Fonterra Capital Notes, 2031

Fonterra collects and processes the large majority of New Zealand's milk and is the country's largest exporter by value. Its debt gives income investors exposure to agribusiness without holding the co-operative's shares.

The credit is investment-grade rated but cyclical: global dairy commodity prices and the farmgate milk price feed directly into earnings and gearing.

Interest is paid quarterly. The 2031 line trades on the NZX Debt Market through a sharebroker in parcels from $5,000.

Fonterra Capital Notes, 2031 is bought and sold through a New Zealand sharebroker rather than direct from the issuer. You pay the prevailing market price plus brokerage, which is why the yield to maturity above differs from the 6.05% coupon.

Held to August 2031, you receive the scheduled interest and face value at maturity, assuming the issuer meets its obligations. Sold earlier, you receive whatever the market pays that day — higher if interest rates have fallen, lower if they have risen. Listed does not guarantee liquid, so the prudent assumption is that you hold to maturity.

This bond ranks as senior unsecured. Ranking determines where you stand relative to other creditors if the issuer runs into trouble, and it matters more than the headline rate.