Lotteries and gaming services operator Tatts Group will raise $200 million by issuing bonds to investors in order to pay off bank debt.

Tatts will offer seven-year unsecured bonds at $100 each, with the bonds to be listed on the Australian Securities Exchange (ASX) from early July.

The proceeds will be used to repay existing bank debt, and will diversify its funding sources and lengthen the company’s debt maturities, the company said.