Asahi to raise $4.3bn for acquisition of AB InBev’s Australian arm

Japan’s Asahi Group is reportedly planning to raise nearly JPY457.5bn ($4.3bn) through stock and bonds sale to finance the acquisition of AB InBev’s Carlton & United Breweries (CUB) unit in Australia.

Last July, AB InBev agreed to sell its Australian subsidiary Carlton & United Breweries (CUB) for an enterprise value of A$16bn ($11.3bn).

Bloomberg reported that the Japanese alcoholic beverage producer intends to raise as much as JPY157.5bn ($1.48bn) a share offering in Japan.

It will raise remaining JPY300bn ($2.8bn) through the sale of subordinated-bonds.

In a separate development, Asahi planning to offer its ‘Green Bonds’ within the local market in October, designed to enable the company to raise funds for the business to help solve environmental problems.

As part of this initiative, Asahi also submitted an amendment to the shelf registration statement to the Director of Kanto Local Finance Bureau, said to be the first green bond issued by the Japanese company.

Asahi noted that the company will use the proceeds from the sale of green bonds for procuring recycled PET, biomass plastic, the purchase of renewable energy, and for forest conservation activities.

Through these initiatives, the Japanese firm intends to support its goals of zero CO₂ emissions by 2050.

Additionally, the company intends to use the proceeds through the sale of the green bond to accelerate its efforts to work towards the realisation of a sustainable society.