AB InBev announced it has completed the pricing of $ 4.0bn bonds, consisting of 4 different maturities :
$ 1.0bn 3-year fixed rate notes (coupon 0.8%)
$ 1.0bn 5-year fixed rate notes (coupon 1.25%)
$ 1.25bn 10-year fixed rate notes (coupon 2.625%)
$ 750m 30-year fixed rate notes (coupon 4.0%)
Subject to customary closing conditions the issuance is expected to close on 17 January.
AB InBev continues to refinance at very attractive levels. We expect the average coupon rate to drop by around 100bps in 2013 (to 4.0%) vs the 2012 expected average coupon rate. The expected lower average coupon could in our opinion yield about € 0.20 additional EPS in 2013. We stick to our Hold rating and € 67 target price for now as we continue to believe AB InBev is a very well managed company with strong market positions, albeit the stock is trading close to its fair value.