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Diageo Announces Launch €2 Billion Of Fixed-Rate Bonds

Published on Oct 17 2018 10:29 AM in Drinks tagged: Diageo / Bonds / European Debt Issuance Programme

Diageo Announces Launch €2 Billion Of Fixed-Rate Bonds

Drinks giant Diageo has announced the launch of €2 billion in fixed-rate euro-denominated bonds under its European Debt Issuance Programme.

The issuer of the bonds will be Diageo Finance plc, with payment of principal and interest fully guaranteed by Diageo plc.

The issue consists of €900 million worth of bonds due October 2021, with a coupon of 0.250%; €600 million worth of bonds due April 2025, with a coupon of 1.000%; and €500 million worth of bonds due October 2027, with a coupon of 1.500%.

The company said in a statement that proceeds from this issuance will be used for general corporate purposes.

Joint book-running managers on the issuance include Citigroup Global Markets Limited, Deutsche Bank AG (London Branch), HSBC Bank plc, Morgan Stanley & Co. International plc, and NatWest Markets Plc.

Sales Expectations

In September, Diageo said that it expected sales growth in full-year 2019 to be 'broadly' in line with those of the past fiscal year.

However, the company has faced headwinds in terms of currency exchange rates, with chief executive Ivan Menezes saying in a trading statement that the business "experienced some increased emerging-market foreign-exchange volatility, which has been partially offset by a strengthening of the dollar".

© 2018 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.

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