The Independent News & Media group is preparing to launch a €125 million bond later this week and will use the proceeds to replace some of its existing debt.

The bond, which will be issued on Thursday or Friday, is expected to yield between 7.5 per cent and 8 per cent, according to its lead broker, Davy. It reported that the take-up was going well and analysts expect IN&M will be successful in raising these funds. The bond will have a maturity date of December 2008.

The group, which has publishing operations in Ireland, the UK, Australia, New Zealand and South Africa, has been restructuring its debts and has been refinancing some of its more mature liabilities. It has indicated that the bulk of the €125 million will be used to replace some of its existing debts. The group launched a €315 million recapitalisation programme in March and has been raising funds through share issues and asset disposals.

Last month Britain's Minister for Competition, Mr Gerry Sutcliffe, sanctioned the sale of two London titles by IN&M. The titles are part of a stable of titles that Independent is selling in the UK. The British government delayed the sale of the two titles to Newsquest, a subsidiary of US company Gannett, because of competition concerns.

The group's large debts had been weighing on its share price and the announcement of a recapitalisation programme was very positively received by investors.

Yesterday, its shares traded four cent higher at €2.06 in Dublin.

IN&M has posted modest profit growth for the first half of the year, with solid performances in South Africa, New Zealand and Australia helping to offset a weaker outcome in the UK and the Republic. It reported pre-tax profits of €52.4 million for the six months to the end of June, up just over 1 per cent on the same period of 2002.