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Highlights

  • Diageo issues two fixed-rate USD-denominated bonds totaling $1.5 billion.

  • Proceeds earmarked for general corporate purposes.

  • Settlement scheduled for April 15, 2025.

Diageo (LSE:DGE), one of the world’s leading producers of premium alcoholic beverages, has successfully launched and priced a two-tranche bond offering worth $1.5 billion. The bonds, issued under an SEC-registered offering, reflect continued investor confidence in the company’s long-term growth trajectory and financial health.

The bond issuance includes two equal parts:

  • $750 million in 5.125% fixed-rate notes due in 2030

  • $750 million in 5.625% fixed-rate notes due in 2035

The notes are being issued by Diageo Investment Corporation, a subsidiary of Diageo plc. The parent company will provide a full and unconditional guarantee on the principal and interest payments. The proceeds from the offering are intended for general corporate purposes, although Diageo has not disclosed any specific use cases at this time.

Settlement of the offering is slated for April 15, 2025.

This move is part of Diageo’s broader strategy to improve its financial base and enhance liquidity while capitalizing on favorable market conditions. The dual-tranche structure allows the company to stagger its debt maturity, balancing short- and long-term financing needs.

A team of leading financial institutions has been enlisted to manage the offering. Barclays Capital Inc., BNP Paribas Securities Corp., BofA Securities, Deutsche Bank Securities, and Goldman Sachs & Co. LLC have been named as active joint book-running managers, while RBC Capital Markets LLC and Standard Chartered Bank are acting as passive joint book-running managers.

While Diageo has not elaborated on the strategic timing of this issuance, analysts suggest it may be a proactive measure to lock in financing ahead of potential interest rate fluctuations.

The offering has been made strictly in accordance with SEC regulations, and Diageo has emphasized that the press release does not constitute an offer or solicitation to sell or buy securities in any jurisdiction where such an act would be deemed unlawful. Any sale or solicitation will only be conducted through a prospectus supplement that accompanies the prospectus filed with the U.S. Securities and Exchange Commission.