Diageo PLC (LSE:DGE) said it launched and priced US$2.9bln in euro- and sterling dominated bonds to fund what the drinks giant called "general corporate purposes".
The maker of Guinness and Smirnoff vodka launched €1.65bln of fixed rate euro-denominated bonds and £900mln of fixed rate sterling-denominated bonds under its European debt issuance programme, according to a statement.
Under the terms of the offering, Diageo will issue €750mln in bonds due June 2029 with a coupon of 1.500% per annum, €900mln bonds due June 2034 with a coupon of 1.875% per annum, £300mln bonds due June 2028 with a coupon of 2.375% per annum and £600mln bonds due June 2038 with a coupon of 2.750% per annum.
Diageo Capital BV will issue the euro-denominated bonds and Diageo Finance PLC the sterling. The payment of principal and interest will be fully guaranteed by Diageo PLC (LSE:DGE).