Edel music is planning to offer a corporate bond of up to €30 million ($38 million), the Hamburg-based independent label group said today (April 26). According to Edel chairman/CEO Michael Haen

Edel music is planning to offer a corporate bond of up to €30 million ($38 million), the Hamburg-based independent label group said today (April 26). According to Edel chairman/CEO Michael Haentjes, the funds shall largely be used to finance investments in its distribution and replication facilities and to repay long-term bank liabilities.

The bonds offer a fixed annual interest rate of 7% with a duration of five years. They will be divided into shares of €1,000 ($1298) and will be issued on April 28, the day after the company's annual meeting.

News of edel's fund-raising strategy comes after the company yesterday reported first half financial gains. For the six months to March 31, group sales increased by 16% year-on-year to €82.7 million ($107.3 million). Earnings before interest and tax rose to €6.2 million ($8 million), vs. €4 million ($5.1 million) in the corresponding period last year. Also during the period, the group's operational cash-flow tripled to €12.7 million ($16.4 million).

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