Diageo PLC (LSE:DGE) is looking to beef up its balance sheet by raising US$1.7 billion via a twin US bond issue after last week reporting the ongoing challenges in its market.
Shares in the maker of alcoholic drinks including Smirnoff, Johnnie Walker, Bailey's and Guinness have fallen roughly 17% to 3,001.5p so far this year.
The FTSE 100-listed group said in a statement today that the bond offering was made up of US$800 million of notes paying a 5.375% rate and due in 2026 and another US$900 million paying 5.625% and due in 2033.
With the offering expected to be bought up by Thursday this week, proceeds will be used for general corporate purposes, it added.
Last week, chief executive Debra Crew said the board still expects to meet its full-year guidance even though it expects “operating environment challenges to persist, with ongoing cost pressure and geopolitical and macroeconomic uncertainty”.