AstraZeneca prices €2.55bn euro bond sale across four tranches Proactive uses images sourced from Shutterstock
AstraZeneca PLC (LSE:AZN, NASDAQ:AZN), the FTSE 100 pharma group, has priced a €2.55 billion bond offering, tapping the euro debt market for general corporate purposes.
The notes were issued on Monday by AstraZeneca Finance LLC, a wholly owned US subsidiary, and carry a full and unconditional guarantee from the parent company.
The sale was split across four fixed rate tranches with maturities stretching from 2030 to 2038. The largest is a €750 million tranche maturing on 1 September 2038 with a coupon of 4.169%.
A €700 million tranche maturing in March 2030 pays 3.402%, the cheapest money in the deal. The remaining two tranches comprise €600 million maturing in 2032 at 3.652% and €500 million maturing in 2035 at 3.923%.
The pricing curve reflects the standard pattern of investors demanding higher returns for lending over longer periods.
AstraZeneca described the issuance as consistent with its long-term funding strategy and said proceeds would go towards general corporate purposes rather than any specific project or acquisition.
The company has been an active borrower in recent years as it funds an expanding pipeline and a series of manufacturing commitments, including substantial investment in the United States.
The notes are being issued under the euro medium-term note programme, a standing framework that allows a company to issue debt repeatedly without drafting fresh documentation each time.
They will be listed on the Financial Conduct Authority’s Official List and admitted to trading on the London Stock Exchange’s main market.
Barclays, Goldman Sachs International and Morgan Stanley (NYSE:MS) acted as joint book-running managers.