Glanbia's largest shareholder, Glanbia Co-operative Society, is to raise €100 million by issuing a five-year exchangeable bond against its shares in the dairy group.

The company confirmed the move in a statement to the Irish Stock Exchange this morning.

Most of the proceeds will be used to create a dynamic market volatility fund for its members that will allow them to access funds when the market price for milk and grain falls below specific levels. The funds will be available on an interest-free basis, with the programme recovering funds when milk and grain prices exceed a certain level.

According to Glanbia, the total number of ordinary shares in issue by Glanbia plc will not change as a result of this bond.