WELLINGTON - New Zealand's Fonterra, the world's biggest dairy company, has raised 300 million yuan (42 million, 56 million NZ dollars) through an issue of renminbi (RMB) bonds in Hong Kong that was almost six times oversubscribed, the company announced Monday.

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The CNH (Chinese yuan deliverable in Hong Kong) denominated bonds, which went on sale Friday, were priced at 1.1 percent per annum, the lowest coupon achieved yet for an international corporate issue in the CNH market, said Fonterra general manager treasury Stephan Deschamps.

The bonds have a three-year term and mature in June 2014.

"The strong interest in this issue demonstrates international investors' recognition of Fonterra's financial strength," Deschamps said.

"China is an increasingly important market for Fonterra and the CNH market is likely to grow as companies seek funding for their investments in this rapidly growing economy."

The farmer-owned cooperative, which is best known for the Anchor brand of products, sells its products in more than 100 markets in Asia, Africa, the Middle East and Latin America, as well as Australia and New Zealand.

It is the largest processor of milk in the world, producing more than 2 million tons of dairy ingredients, value added dairy ingredients, specialty ingredients and consumer products every year and employing 16,000 people.