Stobart Group has raised just over £53 million to fuel the growth in its aviation and energy businesses.

The Carlisle-headquartered has placed £53.075m of secured guaranteed exchangeable bonds brought forward from its wholly owned subsidiary Stobart Finance Plc.

The Bonds will have a five-year maturity and will be “unconditionally and irrevocably guaranteed” by the company, it said in a statement to the London Stock Exchange.

They will also be exchangeable into ordinary shares of 1p each in the capital of Eddie Stobart Logistics Plc allowing Stobart Group “realise the value of its interest” in the company, said Stobart Group chief executive Warwick Brady.

The Bonds will be redeemed on the maturity date of May 8, 2024, with the company saying it is intended that application will be made for the bonds to be admitted to trading on the open market of the Frankfurt Stock Exchange within 30 days after the closing date.

Stifel Nicolaus Europe Limited is acting as sole bookrunner and Orbit Investment Securities Services Plc is acting as selling agent.

Mr Brady said: “Stobart Group is focused on accelerating the growth in its core Aviation and Energy divisions. These divisions require further investment in order to optimise shareholder returns on a sustainable basis. 

“The Group has reviewed its capital requirements and the most effective use of its assets and investments in order to achieve this aim. The issuance of this bond allows Stobart Group to realise the value of its interest in Eddie Stobart Logistics while protecting the long-term interests of shareholders."

The moves comes after a busy few months for Stobart Group’s aviation business.

The company is part of the Connect Airways consortium which recently took over struggling airline Flybe.

Locally, it announced that flights would begin from Carlisle Lake District Airport on July 4 after two delays.

And across in the North East, Stobart Group was unveiled as the new operator for Durham Tees Valley Airport after entering into a joint venture with its new owners Tees Valley Combined Authority.

Stobart Group will be responsible for oversight and the development of the airport. It will also implement a 10-year rescue plan to increase passenger numbers to 1.4 million, secure a low-cost carrier by 2022, and drive the creation of 7,600 jobs.