North Yorkshire-based power company Drax Group said on Monday it is preparing to raise €250 million via a bond sale.

In a stock exchange statement, Drax said: “Drax Finco plc, a subsidiary of Drax Group plc, has mandated certain banks acting as joint bookrunners to arrange a global investor call and a series of fixed income investor calls on 19-20 October 2020.

“An offering of €250,000,000 five-year (non-callable for two years) senior secured notes may follow, subject to market conditions.

“If the offering is completed, the expected issue rating is BB+ from both S&P and Fitch.

“If the offering proceeds, we intend to use the expected gross proceeds (i) for general corporate purposes, which may include the repayment of indebtedness, and (ii) to pay estimated fees and expenses of the offering, including initial purchasers’ fees and commissions, professional fees and other associated transaction costs.

“There can be no assurance that the offering will proceed or will be completed.”