AB InBev sells €13.25bn Euro-Bond notes, an all-time record to help pay for SABMiller acquisition

Anheuser-Busch InBev (AB InBev), the Belgian brewer known for its Budweiser and Stella Artois brands, among others, has sold a record amount of corporate euro denominated bonds to help finance the acquisition of SABMiller.

The world’s largest brewer issued a whopping €13.25bn ($15bn) of notes in six tranches, according to records compiled by Bloomberg. This follows a $46bn bond sale in January, which was also to raise funds for the $108bn takeover of SABMiller.

The brewer is taking advantage of an increased demand for investment grade Euro-denominated debt after the European Central Bank (ECB) announced plans to start buying non-bank corporate bonds last week. The announcement by the ECB has brought about a rush in sales and helped reduce borrowing costs for highly rated borrowers to the lowest since June.

AB InBev is in the midst of acquiring SABMiller to gain greater market access to emerging markets, particularly in Africa and Latin America. Both companies have agreed to sell their stakes in joint-venture partnerships in U.S., China and Europe to enable the deal gain regulatory approval. The transaction is expected to close in the second-half of this year.

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One Response to AB InBev sells €13.25bn Euro-Bond notes, an all-time record to help pay for SABMiller acquisition

  1. raymond t smout says:

    Its listing on the JSE still as important to the South African economy or will the 2% stake it has on the JSE be moved offshore, if so this will have disasterous effects on an already weak rand but on the upside the listing would have positive implications for the investor seeking a stable haven for his investment

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