Thursday, July 25, 2024

Diageo Issues €500M Floating Rate Bonds for Corporate Use

Diageo, a well-known company in the beverage alcohol industry, has announced the issuance of €500 million in floating rate bonds. These bonds will mature in June 2026 and will be used for general corporate purposes. This means Diageo can use the money for various business needs.

Issuer and Guarantor

The bonds will be issued by Diageo Finance plc. Diageo plc will fully guarantee the payment of principal and interest on these bonds, ensuring that investors will get their money back with interest.

Lead Manager

HSBC has been chosen as the sole lead manager for this bond issue. This means HSBC is responsible for organizing and managing the sale of these bonds.

Target Investors

These bonds are intended only for professional clients and eligible counterparties. This includes businesses and financial institutions, but not regular individual investors. Because of this, no key information document (KID) has been prepared. This document is usually required for retail investors in the EEA (European Economic Area) and the UK.

Regulatory Compliance

The bonds are being sold outside the United States, following Regulation S under the U.S. Securities Act. This regulation allows the bonds to be sold without needing to register with the U.S. Securities and Exchange Commission (SEC).

Qualified Investors Only

This announcement is directed only at qualified investors in the EEA and the UK. These investors are defined under the EU Prospectus Regulation and the UK Prospectus Regulation. The announcement is not an offer to sell or buy the bonds. Instead, it is just information about the bonds being available.

Reference Documents

Investors interested in these bonds should refer to the final base prospectus dated August 17, 2023, and the supplement dated February 27, 2024. These documents, along with the final terms of each bond series, provide all the necessary details. They are available on the London Stock Exchange website.

Summary

In summary, Diageo is issuing €500 million in bonds to support its business needs, with HSBC managing the process. These bonds are meant for professional investors and are sold outside the U.S. under specific regulations. All the detailed information can be found in the official documents on the London Stock Exchange website.

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