Diageo has reopened a bond, while launching another, to raise funds for "general corporate purposes".

The UK-based drinks company confirmed today (21 April) that it has reopened its EUR850m (US$1.35bn), fixed rate, five-year euro bond, due in July 2013, with a coupon of 5.5%. At the same time, Diageo has launched an additional EUR300m bond, set on the same terms. The EUR300m bond will be consolidated with the EUR850m bond to form a single series.

Proceeds from the two bonds will be used for "general corporate purposes", the company said.

Late last year, Diageo issued US$500m of long five-year and $1bn of ten-year SEC-registered securities. The five-year bond pays a coupon of 5.2%, while the ten-year bond pays a coupon of 5.75%. Proceeds from both bonds will also be used for general corporate purposes, according to the company.