SABMiller: First debt sale Down Under on cards

SABMILLER must be hoping that Australians like its debt as much as its beer. The world’s second-largest brewer, which took over iconic Australian beer brands including Foster’s and Victoria Bitter (VB) in 2011, is considering its first bond deal Down Under. While subdued consumer sentiment had pressured beer sale volumes in Australia, SABMiller said this month it had increased its share of the nation’s market. A debt sale by the London-based producer would add to A$4.46 billion (R41.9bn) of bond offerings in Australia this year by non-financial companies including BHP Billiton and Swiss concrete maker Holcim. “A number of companies from outside Australia have been doing issuance here and that goes to supporting the market by creating greater diversity and depth,” Justin Davey, a Sydney-based money manager at BT Investment Management, said. A deal from SABMiller “would be very welcome and would only add to the Australian market”. The drinks manufacturer, whose Carlton Draught and VB brands are among the nation’s most popular, would meet with Aussie fixed income investors next month and a capital markets deal might follow, sale managers Australia & New Zealand Banking Group and Westpac Banking said yesterday. SABMiller carries a credit score of A- at Standard & Poor’s and Fitch Ratings, the seventh-highest ranking. – Bloomberg