The Co-operative Group has priced a bond offering of £350m of 8.25% sustainability senior notes due in 2031.
The offering is expected to be issued on June 11 and aims to extend the group’s debt maturity profile to support its growth strategy.
The net proceeds from the sustainability bond are expected to be used to redeem the Co-op’s existing £350m senior notes due in July 2026.
Co-op said the offering forms part of its long-term planning to reach 10 million active members, up from its previous target of 8 million.
The retailer noted that it had managed to successfully strengthen its balance sheet despite managing to fallout of a criminal cyber attack last year, without additional funding.
Co-op chief financial officer Rachel Izzard said: “Our Co-op is more than 180 years old, and now we’re strengthening it for the next 180.
“By refinancing bond debt, we’re maintaining our financial resilience and widening our options, so we can keep sharing value with members, colleagues and communities in the years ahead.”
Earlier this month, Co-op confirmed plans to merge its business with Southern Co-op to form an enlarged Co-operative Group.
The merger of 300 stores adds to the group’s existing network of around 2,300 food stores, 800 funeral homes, a wholesale arm, as well as legal and insurance businesses.
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