Guinness issues £250m bonds at 4% coupon

The bonds, which mature in October 2044, had been assigned an A1 rating by Moody’s, along with an AA- rating from Standard and Poor’s.

Volatility in the markets and a drop in gilt yields has meant a higher credit spread compared with some recent issuance.

The bonds achieved a reoffer price of £99.65. The transaction was priced over the 4.5% 2042 reference gilt. The all-in cost for the 30-year debt comes in at over 4 per cent.

Security includes 105% EUV-SH or 115% MV-ST, or 100% cash.

Moody’s had said Guinness’ latest rating is based on ‘the fundamental credit quality of The Guinness Partnership, which carries an issuer rating of A1 with a stable outlook.’

Barclays and RBS were bookrunners on the transaction. Trowers & Hamlins provided legal advice.