AB-InBev pays down some debt

Belgium | As the IPO of its unit Budweiser Asia has flushed in some USD 5 billion in cash, AB-InBev wasted no time and decided to reduce its debt load.

According to the website seekingalpha.com, the brewer has exercised an option to redeem in full three outstanding notes, issued by itself and subsidiaries. This was reported on 30 September 2019.

The total amount being redeemed is USD 4.88 billion. That is USD 2.97 billion worth of US notes and EUR 1.75 billion worth of European notes.

Budweiser Asia, which sells its namesake beer as well as Corona, Stella Artois and other brands in the region, is now worth some USD 48 billion. It is currently more valuable in terms of market capitalisation than Japan’s Asahi Group Holdings, Denmark’s Carlsberg A/S and local rival China Resources Beer (Holdings), according to The Wall Street Journal. At their IPO price, Budweiser Asia shares implied a price-earnings multiple of 37 times estimated 2020 earnings.

AB-InBev said on 4 October 2019 that its stake in Budweiser Asia is 87.2 percent.