AstraZeneca has tapped European debt markets with a €2.55bn multi-tranche bond offering.

The transaction, which is expected to close on 1 September subject to customary conditions, will provide the company with additional financial firepower for general corporate purposes and forms part of its longer-term funding strategy.

The FTSE 100 drugmaker said its wholly owned subsidiary, AstraZeneca Finance LLC, successfully priced four tranches of euro-denominated notes ranging from four to 12 years in maturity.

The offering comprises €700m of notes due in 2030 carrying a 3.402% coupon, €600m due in 2032 at 3.652%, €500m due in 2035 at 3.923%, and €750m due in 2038 at 4.169%. The bonds are fully guaranteed by AstraZeneca Plc.

The notes will be issued under AstraZeneca's Euro Medium Term Note programme and listed on the FCA's Official List and London Stock Exchange (LSE) Main Market. Barclays Bank PLC, Goldman Sachs International and Morgan Stanley acted as joint book-running managers on the transaction.

During its most recent results, AstraZeneca said it remains on track for its ambition of reaching $80bn of annual revenue by 2030. Earlier this month, there were also reports of talks with US-based Bristol Myers Squibb about a potential combination that could value the merged company at roughly $400bn.

---