Diageo launches fixed-rate bonds

Diageo issued two series of fixed-rate euro-denominated bonds and two series of fixed-rate sterling-denominated bonds on Tuesday.

Under its European Debt Issuance Program, Diageo, a global leader in beverage alcohol, launched and priced €1,650m in fixed-rate euro-denominated bonds and £900m in fixed-rate sterling-denominated bonds on Tuesday.

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The euro-denominated bonds will be issued by Diageo Capital B.V., while the sterling-denominated bonds will be issued by Diageo Finance, with Diageo fully guaranteeing the payment of principal and interest in both cases.

The drawdowns will include the issuance of €750m bonds with a coupon of 1.500% per annum due June 2029, €900m bonds with a coupon of 1.875% per annum due June 2034, £300m bonds with a coupon of 2.375% per annum due June 2028, and £600m bonds with a coupon of 2.750% per annum due June 2038.

Each issuance’s proceeds will be utilised for general corporate objectives.

Barclays Bank PLC, BofA Securities Europe SA, Deutsche Bank Aktiengesellschaft, Goldman Sachs Bank Europe SE have been appointed as joint active book-runners for the euro-denominated bonds, while Credit Suisse Bank (Europe) S.A., RBC Europe Limited, and Standard Chartered Bank have been appointed as joint passive book-runners for the euro-denominated bonds.

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Barclays Bank PLC, Deutsche Bank AG, London Branch, Goldman Sachs Bank Europe SE, Merrill Lynch International have been named joint active book-runners for the sterling-denominated bonds, while Credit Suisse International, RBC Europe Limited, and Standard Chartered Bank have been named joint passive book-runners.

Diageo shares gained 1.2% to 4,025p after the company announced the launch of its fixed-rate euro and sterling bonds in early morning trade on Wednesday.

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