The demand for high quality bonds in the US is still very strong with the largest issuance day on record and the second largest individual bond issue this week. In total USD$54.4 billion of bonds were issued with Anhueser-Busch InBev issuing USD$46 billion, including an USD$11 billion 30 year tranche. The company had planned to sell around USD$30 billion of bonds but demand was so strong with over USD$100 billion of orders, the company increased the issue size.
The AB InBev deal is second only to Verizon Communications deal which sold USD$49 billion worth of bonds in September 2013. It is worth noting that AB InBev are in the middle of funding a USD$108 billion takeover of SAB Miller. For the record, the 10 year AB InBev bonds sold at around 3.67% or US Treasurys + 160 basis points.
