Cargill plans to raise $1.25 billion through the issuance of high-rated bonds, becoming one of the few companies to enter the market at a time when borrowing costs are soaring. According to people familiar with the matter, the food trade giant is issuing two parts of bonds with terms of 3 and 10 years, respectively. The pricing for the longer-term portion was narrowed by about 25 basis points from the initial discussion level, and was eventually set to be 75 basis points higher than US Treasury bonds. The offering is Cargill's first bond issuance in about a year, at a time when global bond yields soar are driving up corporate financing costs. As a result, the costs for businesses to seek debt refinance or finance transactions go up. Last week, Paramount Sky Dance's newly issued large-scale bonds were treated coldly by the market, causing investors to bear significant book losses immediately after pricing, which also caused market unease.

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