The Executive Board of Royal FrieslandCampina N.V. has decided to repay 54 million euros of member bonds-free. By doing so, the company wants to facilitate a smooth transition to Zuivelcoöperatie FrieslandCampina U.A.’s new member financing system that will become effective per 1 January 2022.
At the heart of the new member financing system is a link between a substantial part of the members’ capital and the milk supplied by the members. It has also been agreed that should there be any imbalance in the internal market for member bonds-free in the future the cooperative will solve this among members by a cooperative solution.
The new member financing will reduce the imbalance in contributed capital caused by an ageing population. By issuing the milk certificates also the quality of the company’s equity improves. Until 17 December 2021, members can indicate how they will finance the required milk certificates. This can be done, for example, by converting member bonds-fixed and -free, and the member certificates issued at the time of the merger in 2008.