Co-op Group, the Manchester-based member-owned mutual, said it has launched a bond offering of £350 million sterling-denominated fixed rate sustainability senior notes due 2031.

Owned by its 7 million member-owners, the Co-op has 2,300 food stores, 800 funeral homes and a wholesale business supplying 8,000 additional outlets. It employs 53,000 staff and generates annual revenues of over £11 billion.

“The offering is a leverage-neutral refinancing transaction aimed at proactively extending the group’s debt maturity profile and maintaining headroom to support Co-op’s future planning,” said Co-op Group.

“If completed, the net proceeds of the offering are expected to be used to redeem the group’s existing £350 million aggregate principal amount of senior notes due July 2026 at maturity.

“In April 2026, pursuant to an amendment and restatement of the relevant financing agreements, Co-op upsized its existing revolving credit facility from £400 million to £600 million with a maturity of November 2029 and reduced the commitments under its existing term loan from £350 million with a maturity of June 2030 to £150 million.

“Co-op intends to utilise the existing term loan to increase liquidity headroom and fund cash on the balance sheet.

“The Notes are expected to be guaranteed on a pari passu basis with the group’s existing term loan and revolving credit facility.

“The principal amount, interest rate, issue price and certain other terms of the Notes will be determined at the time of pricing of the Offering, subject to market conditions. An update will be provided as appropriate in due course.”