Associated British Foods PLC (LSE:ABF) said it raising £400mln with the launch of its inaugural public bond.
The bonds have an interest rate of 2.5% and mature in 2034, AB Foods said in a statement. They are expected to be rated 'A' by S&P Global Ratings.
"These bonds will diversify the source of funding for the group. They will enhance our liquidity and support the continued investment for growth in our businesses," said AB Foods finance director John Bason.
The bonds are being issued ahead of the maturity of the company’s remaining private placement notes.