FITZWILTON has raised £80 million sterling in a Eurobond issue from 40 Irish and British institutions with the proceeds being used to repay existing short maturity debt associated with the acquisition of the Wellworths supermarket chain.

The fixed rate 10 year bond, which carries a 9.5 per cent coupon, was arranged by Bankers Trust and SBC Warburg, but 40 Irish, English and Scottish institutions contributed to the funding. The £80 million bond is being used largely to refinance the Wellworths borrowing, of which £74 million is outstanding, and which was due to repaid over six years.

Fitzwilton finance director Mr Patrick Dowling said that the new bond carried a broadly similar interest rate to the existing debt, but the longer term of the loan would free up capital which Fitzwilton could use to expand the Wellworths supermarket chain, as well as provide further cash cover for dividend payments.