Easy money

12 June 2008 By Fiona Maharg-Bravo

Who said debt markets were closed? If Inbev s offer for rival Anheuser Busch succeeds, it will need all that debt but still manage to keep an investment grade rating. Even banks wracked by the creditcrunch are helping out. The leverage looks aggressive, but feasible.

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Inbev has secured a $40bn commitment to finance its $46bn offer for Anheuser Busch. The BelgianBrazilian brewer said it had lined up a consortium of eight banks, including JPMorgan and Santander, to provide all the financing for the deal. Barclays Capital, BNP Paribas, Deutsche Bank, Fortis, ING Bank and the Royal Bank of Scotland are also lending. The rest of the purchase price will be financed by selling assets and equity financing.

Inbev said it was committed to maintaining its investment grade rating.

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