Insulation manufacturer Kingspan will see its overall borrowing costs reduce further, according to analysts, after it sold €250 million of debt privately in the US this week.

The debt was priced to pay an annual coupon of 1.48 per cent for an average term of nine years, the company said on Wednesday. Some €32 million of the proceeds will be used in March to meet a scheduled note maturity, with an annual coupon of 4.15 per cent.

“At end-2015, Kingspan had outstanding loan notes and bank loans of €568 million at a weighted cost of 3.06 per cent,” said Davy analyst Flor O’Donoghue in a note on Thursday. “We estimate that the equivalent rate at the end of 2014 was over 5.2 per cent.”

“Hence the latest announcement will put further downward pressure on the group’s cost of debt. It will also clearly enhance Kingspan’s financial capabilities and its platform for further investment in 2017 and beyond.”