A-B InBev wants to take back control of Oriental Brewery

A-B InBev wants to take back control of Oriental Brewery

Anheuser-Busch InBev has said that it plans to raise US$5.25bn via a series of bond issues.

The Budweiser brewer, which will generate the funds via six bond issues, said today (23 January) that the proceeds will be used for "general corporate purposes" and financing relating to its US$5.8bn re-acquisition of Oriental Brewery, announced this week.  

The details of the tranches are listed below.

  • US$1.2bn fixed rate notes due 2017, with annual interest rate of 1.125%
  • $300m floating rate notes due 2017
  • $1.25bn fixed rate notes due 2019, with annual interest rate of 2.15%
  • $250m floating rate notes dues 2019
  • $1.4bn fixed rate notes due 2024, with annual interest rate of 3.7%
  • $850m fixed rate notes due 2044, with annual interest rate of  4.625%

The floating rate notes will bear interest at an annual rate of 19 basis points above three-month LIBOR (London Interbank Offered Rate) for the 2017 floating rate notes and 40 basis points above three-month LIBOR for the 2019 floating rate.