Global alcohol beverage firm, Diageo, has launched and priced a $1.7bn SEC-registered bond offering.

The offering consists of $800m 5.375% fixed rate notes and $900m 5.625% fixed rate notes, due in 2026 and 2023 respectively.

Diageo offers a range of alcoholic beverages as part of its portfolio, including Johnnie Walker, Smirnoff, Ciroc, Guinness and Captain Morgan. It trades in more than 180 countries and is listed on both the London and New York stock exchanges.

The issuer of the bond is Diageo Capital, with payment of principal and interest “fully and conditionally guaranteed” by Diageo.

Proceeds from the issuance will be used for general corporate purposes, with the bond offered scheduled to settle on 5 October 2023.

BofA Securities, Deutsche Bank Securities, RBC Capital Markets and Standard Chartered Bank acted as joint active book-running managers on the offering.

Earlier this year, Diageo reported that it had narrowly beaten its full-year earnings estimates, as sales of its more expensive brands offset lower values. The most expensive brands accounts for over half (57%) of its overall organic net sales growth.

Organic net sales rose by 6.5% in the year to 30 June, which was 0.1% higher than the levels expected by analysts. Operating profits also rose by 7% in the same period, which is 0.7% above what analysts predicted.

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