GPA Group has now raised $4.05 billion (£2.57 billion) from investors enabling the group to meet debt repayment and other financial obligations.

After one of the largest ever bond issues in the US market, the Shannon based group will be able to repay in cash core bank debt of about $2.9 billion. Group borrowings will be reduced to $1.5 billion. After expenses, the fund raising will generate cash of about $860 million for GPA.

The bond issue comes at the end of three years of reorganisation and restructuring following the failure of the planned stock market flotation in 1993. First announced in July 1995, the refinancing plan involved the sale of 229 aircraft into a special purpose company, Airplanes Group, for $4.5 billion.

To finance the purchase, Airplanes issued notes or bonds secured against the aircraft which were offered to investors. Eight classes of bonds with varying maturity dates and investment grades were issued. One unrated and unregistered class of notes of $450 million was retained.

Welcoming the completion of the fund raising, GPA's chief executive officer, Mr Patrick Blaney, said the group would now be able to repay its bank debt and other secured creditors in full in cash and its ability to repay its remaining obligations had been "significantly enhanced".

He declined to disclose the pricing of the bonds but said the offer - the largest ever aircraft lease securitisation issue - was oversubscribed. The bonds were "well priced", he maintained. Some 40 per cent of the offer was taken up by European investors with the remainder bought by US and Japanese investors.

Sources in the US market said the pricing was in line with expectations. There were five Class A notes as well as B, C and D notes. Class Al, which raised $850 million with a two year average life, was priced at 0.28 of a percentage point over the London Interbank Offer Rate (LIBOR).

The $750 million three year A2 note was priced at LIBOR plus 0.35 of a point. The A3 $500 million five year note was priced at LIBOR plus half of a point. The seven year $200 million A4 note was priced at LIBOR plus 0.65 of a point while the price on the 18 month A5 note was LIBOR plus 0.375 of a point.

The $375 million 7.5 year B tranche was priced at 1.2 per cent over LIBOR while the 10.2 year $375 million C note was priced at two percentage points over 10 year US Treasury Bonds. The $490 million 12 year D note was priced to yield 11.1238 per cent.

One of GPA's Irish advisers, Mr John Condon of KPMG Corporate Finance, said the timing of the offer was optimal despite the uncertainty on US bond markets in recent days.

US dealers said the size and pricing of the offer was restructured slightly on Tuesday in response to strong demand for the short dated floating rate offers. Offers of two and three year bonds were increased while seven and 10 year notes were reduced.

The fund raising follows tense negotiations between GPA and rebel shareholder the Pennsylvania based Public School Employees Retirement System.