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Shares in Noble Group, the Singapore-based commodity trader, rose on Tuesday morning after it raised $750m from the sale of junk bonds.

The proceeds from the issue – significantly higher than had been rumoured in the market– will be used to replace short term debt.

Noble said the bonds, which mature in 2022, would pay interest of 8.75 per cent, a slightly lower coupon than had been expected.

The five-year notes attracted more than $2.4bn of orders from institutional investors. Traders said Noble appeared to have taken advantage of rising commodity prices and rally in the Asian high yield debt market to raise as much as possible.

Noble has $1.3bn of bank debt due to mature in 2017, according to last week’s annual results presentation,

Shares in Noble, which has been hammered by two years of questions over its accounting during a commodity slump, gained 2.25 per cent to S$ 22.5 cents.

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