Arla successfully sells new bonds

In order to establish a broader financing platform and to refinance parts of Arla’s existing bank debt, Arla has again given professional investors the opportunity to invest in the company through bonds with a nominal value of 1.5 billion Swedish kroner.

The bonds will supplement other sources of financing, such as member retainment, mortgage backed financing, and bank loans.

The bonds will be listed on the Irish Stock Exchange and have a maturity of five years. The bonds were sold through Handelsbanken Capital Markets and Nordea Markets and are issued under Arla’s Euro Medium Term Note (EMTN ) programme, which allows for a more active use of bonds.

The bond issue will not affect Arla’s ownership structure and status as a 100 per cent farmer owned cooperative.

Facts

Arla has today sold two types of bonds. One bond is fixed interest and provides a fixed yield equivalent to Swap plus 1.15%. The second bond has a variable rate and attracts interest at STIBOR (Stockholm Interbank Offered Rate) plus 1.15%.