Consumers Energy Co. issued and sold $525 million of its 2.50% first mortgage bonds due 2060.

The CMS Energy Corp. subsidiary plans to use the proceeds from the offering to redeem its 5.30% first mortgage bonds due Sept. 1, 2022, and for general corporate purposes.

The interest on the bonds is payable May 1 and Nov. 1 each year, starting Nov. 1, 2020. The securities have a spread to benchmark Treasury of 130 basis points and are expected to be rated Aa3 by Moody’s, A by S&P Global Ratings and A+ by Fitch.

BNP Paribas Securities Corp., BofA Securities Inc., KeyBanc Capital Markets Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and Wells Fargo Securities LLC acted as book managers.