Mobico Group PLC on Tuesday said it secured €500 million in debt financing.

The Birmingham-based public transport provider, formerly known as National Express Group PLC, said it priced and issued €500 million eight-year notes under its £1.5 billion euro medium term note programme. The bonds have a fixed coupon of 4.875% and will mature on September 26, 2031.

Mobico said the bonds have been rated Baa2 by Moody’s and BBB by Fitch.

The proceeds from the issue of the bonds will mainly be used to refinance the company’s existing debt, including its €400 million 2.5% bonds which will mature in November.

Mobico Chief Financial Officer 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 shares fell 1.5% to 84.65 pence each on Tuesday afternoon in London.

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