Industrial holdings group DCC plc is close to completing a $257 million (€203 million) private funding raising in the US, it has emerged.

The company has decided to take advantage of low interest rates in the US market by asking Royal Bank of Scotland to put together a private debt package.

It is understood 11 finance houses, 10 American and one British, have provided funds as part of the deal. DCC declined to comment yesterday on what the funds might be used for.

The company has been linked with several possible acquisitions in recent months, including C&C and various waste management companies in the Republic. It has even been linked with a bid for Greencore, although this is thought unlikely at this stage.

Chief executive Mr Jim Flavin said last November the company wanted to spend up to €500 million on bolt-on acquisitions over the next three years and he was "bullish" about expansion over the medium term.

He said the company was studying several sectors options including British oil distribution operations, IT distributors, hospital suppliers and health food companies in Britain and Ireland.

Mr Liam Igoe, an analyst with Goodbody Stockbrokers, said he expected the company to make acquisitions this year, but not on the scale of the funds being raised in the US.

In recent months several large companies have accessed funds via the US private placement market. However most of these have been State-owned companies like ESB and Bord Gaís.

It is understood the funds come in two tranches - $157 million plus and $43 million. The remainder of the money is priced in sterling. The funds have to be repaid between 10 and 12 years.

This is not the first time DCC has accessed funds in the US. Eight years ago the company raised $85 million in a private placement organised by NatWest bank.

The strong response to DCC in the US market was mainly the result of the firm gaining a NAIC-1 rating. The National Association of Insurance Commissioners (NAIC) is an umbrella body for US insurers and it issues ratings to advise it members on investment opportunities.