Diageo, a global leader in the beverage alcohol sector, is cashing in. This was confirmed by the announcement of the listing of €1.9 billion of fixed-rate bonds denominated in euros under its European debt issuance programme. The issuer will be Diageo Finance plc, and the principal and interest payments will be fully guaranteed by Diageo plc. The transaction, confirmed by the British company that owns more than 200 brands (including Guinness and Johnnie Walker) sold in almost 180 countries, is taking place under its European debt issuance programme.
The proceeds from each issue, the company’s press release underlines, “will be used for general corporate purposes”. Banco Santander, S.A., Citigroup Global Markets Limited, Morgan Stanley & Co. International Plc and NatWest Markets Plc have been appointed as active co-managers, while HSBC Continental Europe and UBS AG London Branch have been appointed as passive co-managers.
The notes, the note adds, are being offered and sold pursuant to an exemption from the registration requirements of the U.S. Securities Act, outside the United States in offshore transactions, pursuant to and in accordance with Regulation S under the U.S. Securities Act. In EEA Member States, the notice is directed only at persons who are “qualified investors” within the meaning of Regulation (EU) 2017/1129 (the “EU Prospectus Regulation”). In the United Kingdom, it is directed only at “qualified investors” within the meaning of Regulation (EU) 2017/1129 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018, as amended (the “UK Prospectus Regulation”).
A corporate bond offering, we recall, is a debt guarantee that a company issues to raise capital. Diageo shares in London are seen as the cheapest since 2018 in July: from a record high of just over £40 each in spring 2022, when the post-Covid recovery boom was in full swing, they have lost more than a third of their value and are now just below £26 each. Following the bond listing news, chief executive Debra Crew reassured investors, saying: “We have set out a clear action plan to address recent performance challenges in our Latin America and Caribbean region and remain confident for the long term.”
This article is originally published on efanews.eu
