Glencore International AG, the world's biggest commodities trader, and part owner of Australian mining firm XStrata Plc has contracted HSBC Holdings Plc, JPMorgan Chase & Co. and Standard Chartered Plc as its lead underwriters bond offering in succeeding months.

Glencore's perpetual bonds sale worth no less than $500 million will allow the company raise additional capital to expand its operations and global presence, a person familiar to the discussion said, who asked not to be identified because details are private.

Glencore, which also engages in the trading of oil, metals and agricultural commodities and own mines and smelters globally reported that first semester profits grew by 42 percent to $1.56 billion as metals demand is still on high demand.

Company data showed that Glencore availed of a $10.2 billion line of credit in May, and has outstanding bonds issued worth $10.1 billion.

In spite the promise of high commodity prices, companies like Glencore, and other commodity trading firms like Louis Dreyfus, Cargill and Olam International were all scrambling for more liquidity to expand its operations.

According to the Rabobank Groep NV's analyst, the business of commodity trading takes up a much needed capital to finance huge inventories of grain and metals, while continuously investing in fixed assets for operations of mining units, food processing factories.

"This is the reason why they needed to go to the capital markets and some are even exploring merging or consolidating operations," he noted.

Louis Dreyfus and Olam International-- owned by the Singapore government's holding firm Temasek, are now engaged in talks for a possible consolidation of their businesses.