G4S raised 600 million euros (489 million pounds) in an oversubscribed bond issue on Friday, as the world's largest security firm proved it can whet credit investors' appetite in spite of last year's failed takeover of Danish firm ISS.

The five-year bond, priced inside guidance at mid-swaps +150 basis points, was ratcheted up from its original 500 million euros target due to investor demand. The book closed with around 3 billion euros of orders, according to bookrunners.

Proceeds from the transaction will be used in part to pay down debt.

The successful issue will come as a welcome boost to G4S as it looks to move on from last November's failed 5.2-billion pound ($8.35 billion) acquisition of cleaning firm ISS, scrapped after opposition from investors.

It also cost the FTSE 100 firm 50 million pounds in fees.

G4S, official security provider for the London Olympics, said in March that it was now focusing on expanding in emerging markets such as India, China and Brazil.

This month G4S hosted a series of meetings to test European investors' appetite for credit, via Bank of America Merrill Lynch , Barclays , BNP Paribas and Danske Bank .

The roadshow concluded in Amsterdam on Thursday.

New deadlines for reaching minimum capital ratios have for months been getting European banks hot under the collar, making corporate lending far from a top priority and forcing companies to diversify towards bonds and away from loans.

G4S was last in the public bond market in May 2009 when it issued 350 million pounds of 10-year bonds, with a coupon of 7.75 percent, off the back of a euro medium-term note programme.

Shares in the group were broadly flat at 288.3 pence at 1420 GMT. Its new offering was the first non-French corporate European investment grade bond to price this week.

($1 = 0.7609 euros)

($1 = 0.6226 British pounds)

(Reporting by Neil Maidment and Josie Cox, IFR Markets; Editing by David Hulmes)