Buyers queue down the aisle for Tesco SLB

By Mike Turner
21 Jan 2021

Tesco, the UK grocer, made a storming debut in the nascent sustainability-linked bond market on Wednesday, encouraging bankers who already expect corporate issuance using the novel structure to rocket this year.

Tesco, rated Baa3/BBB-/BBB-, opened books on its sustainability-linked 8.5 year (July 2029) euro benchmark at 100bp-115bp over mid-swaps. 

Demand poured into the book, enabling Tesco to print a €750m 0.375% bond from €5.75bn of orders at 75bp over, a level “substantially through fair value” according to a lead. The ...

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