Thomas Cook reportedly plans to raise €300 million (£256 million) through a new corporate bond to strengthen its balance sheet and help the company to meet looming debt repayments.

Alongside its annual financial report Thomas Cook said it needs to raise further funds to ensure it has the financial flexibility to manage its debt.

The bond issuance will help the group make a repayment on £200 million of bonds which mature next summer and on a portion of a similar outstanding loan due in June 2020, The Telegraph reported.

Chief executive Peter Fankhauser said last week that the company is still taking a “cautious approach to the year ahead” as it aims to cut its fixed-term debt by £200 million while also restarting its dividend pay outs for the first time in five years.

Fankhauser missed out on a performance bonus of treble his base salary due to the steep decline in the company’s share price over the past year.

Warren Tucker, chairman of the company’s remuneration committee, said that they had considered adding a 200% bonus to his almost £704,000 salary.

But the committee settled on a 165% performance reward for the year after shares almost halved from 120p in October 2015 to 69p at the company’s financial year-end in September.

Cook has struggled in the wake of terror attacks across popular holiday destinations such as Turkey but its revenues were broadly flat at £7.81 billion for the 12 months ending September 30, from £7.83 billion last year.