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LONDON (Alliance News) - Global nutrition group Glanbia PLC on Thursday said its largest shareholder Glanbia Co-operative Society Ltd will raise EUR100 million by issuing a five-year bond exchangeable against Glanbia shares it owns.
Glanbia Co-operative intends to use the majority of the proceeds from the bonds for the creation of a "dynamic market volatility fund" for its milk and grain supplying members.
The fund will enable members to draw down funds on an interest-free basis when the market price for milk and grain falls below specific levels, Glanbia said, while Glanbia Co-operative will recover the funds drawn down when milk and grain prices exceed a higher price trigger.
The remaining proceeds will be for general business purposes.
The number of Glanbia shares doesn't change as a result of the bond.
By Karolina Kaminska; karolinakaminska@alliancenews.com @KarolinaAllNews
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