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.
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
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: firstname.lastname@example.org
To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: email@example.com or find out more online here.