Ineos, the chemicals group that is Britain's biggest private company, will increase the compensation to lenders in an effort to win over enough of them to approve a waiver of its covenants until April next year.

The company, which is one of Europe's largest issuers of junk bonds - high-risk bonds offering high rates of interest - is set to offer senior lenders a greater increase to the interest it pays on its loans than originally offered, according to people involved in talks.