Canadian grocer Loblaw said yesterday (6 May) it will issue C$350m (US$300m) worth of unsecured five-year notes to repay short term debt, refinance other debt and for general corporate purposes.

The retailer said the notes, to be offered through an agency syndicate led by CIBC World Markets and RBC Dominion Securities, will pay a fixed rate of 4.85% annually until maturity on 8 May 2014.

The medium term series 2-A notes are expected to be issued on 8 May and will not be registered under the US Securities Act of 1933, the company said.

Loblaw yesterday saw first-quarter earnings jump by 73% during the first three months of the year, thanks to food inflation and tight cost control.

The company booked net income of C$109m for the three months to 22 March, up sharply from the C$63m posted a year earlier.