Investors oversubscribe AB-InBev USD 46 billion bond deal

There is so much money sloshing around the globe trying to find a new home, that AB-InBev had no trouble selling USD 46 billion in bonds. Actually, AB-InBev’s bond offer was heavily oversubscribed: it could have sold more than USD 110 billion on 13 January 2016, reports the Financial Times. Still, it was the second largest corporate bond offer on record.

The brewer’s offering will help it fund its takeover of rival SABMiller. The merger between AB-InBev and SABMiller to create the largest brewer in the world was agreed in November 2015 for almost USD 110 billion.

AB-InBev is expected to increase its net debt to five times its EBITDA – a rough measure of profit – before decreasing it to four times.