Pernod Ricard has completed the sale of a bond that will net the company EUR850m (US$1.18bn).

The 2%, six-year bond, which was sold earlier this week, marks the first time that the company has sold debt in the Euro bond market since March, 2011. The funds will be used “to pay down bond debt, thus extending the maturity profile of the group’s debt.”

Pernod has a EUR800m bond maturing next year.

Thanks to the rarity value of the sale, there was considerable demand for the paper from European real money accounts. The bond was initially marketed at 'mid swaps plus 95 basis points'. Demand swelled rapidly and books eventually reached EUR3.3bn.

This allowed the bond finally to price at 'mid swaps plus 85 basis points'. This is in line with where the company’s current outstanding bonds are trading.

The bond sale marks a coup for the firm. As planned, Pernod has extended its debt at no additional cost.

The company’s debt is rated Baa3/BBB-.