Tesco returns with £500m secured bond for property sale and lease back

Tesco is looking to sell £500m of bonds secured by seven UK stores as part of a leaseback arrangement with a newly incorporated SPV. It is the sixth transaction of this type in recent years from the UK retailing giant, and bankers are expecting an enthusiastic reception from corporate and ABS investors for what is a familiar structure.

  • 06 Feb 2013

The £500m of bonds will be sold out of Tesco Property Finance 6, a new SPV that will use the funds to buy seven Tesco stores, valued at £455m.

Tesco subsidiaries will lease back the property from the SPV, and those lease payments will go directly towards investor ...

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