International public transport group, Mobico, has successfully priced and issued €500m (£434.8m) worth of eight-year notes under its £1.5bn medium term note programme.

The bonds have a fixed coupon of 4.875% and have been rated Baa2 and BBB by Moody’s and Fitch, respectively. They are set to mature on 26 September 2031.

Mobico, formerly known as National Express Group, is headquartered in Birmingham and operates bus, coach, train and tram services across the UK, as well as in Ireland, Germany, Spain, Portugal, Malta, the US, Canada, Morocco and Bahrain.

The group employs more than 44,500 people and generated revenue of £2.81bn last year.

With the latest issuance marking Mobico’s inaugural benchmark Euro denominated bonds, it is consistent with the company’s objective of diversifying its sources of funding. The proceeds from the issue of the bonds will primarily be used to refinance Mobico’s existing debt, including its £400m 2.5% bonds, which are due to mature on 11 November 2023.

Group chief financial officer of Mobico, James Stamp, said: “We are pleased by the support we received from investors in this debt issue. The issue strengthens our debt maturity profile, diversifies our sources of funding and provides us with a stronger platform from which to deliver future growth.”

Mobico also confirmed that the bonds will be listed on the main market of the London Stock Exchange.

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