British American Tobacco expects the number of adult smokers worldwide to decline by around 20 million by 2028.
British American Tobacco (BAT) has raised $1.5 billion (about R24.7 billion) through a dual-tranche bond offering as the tobacco giant continues to reduce its debt burden while accelerating a long-term shift away from traditional cigarettes.
BAT said the proceeds would be used for general corporate purposes, including the potential repayment of existing debt. The fundraising comes as the company works to reduce its gross debt, which stood at £35.1 billion (R775 billion) in 2025.
"Given current challenges in the external environment, the Group aims to de-lever its gross debt levels (£35.1 billion in 2025) and moderate the annual net financing cost levels to better support the overall strategy of the Group," BAT said in its latest annual report.
But the debt raising also reflects a broader transformation taking place across the global tobacco industry as the world's largest manufacturers prepare for a future in which fewer people smoke cigarettes.
