Tesco Bank Launches Retail Bond
3 February 2011
Tesco Bank is issuing a 5.2% bond aimed at retail investors. This is the first such bond to be issued by Tesco Bank and can be bought and sold by investors exclusively through stockbrokers or wealth managers with a minimum purchase of £2,000. It can be held within a stocks and shares ISA or SIPP.*
The Tesco Bank 5.2% Retail Bond is intended to pay a fixed rate of interest of 5.2% Gross per annum for its term, until August 2018. Investors can sell the bond before maturity on the open market through their stockbroker.** The Tesco Bank 5.2% Bond will be listed on the London Stock Exchange’s Order Book for Retail Bonds.
Benny Higgins, Chief Executive of Tesco Bank commented,
"Tesco Bank is principally funded by retail deposits but there are other attractive funding options. Many investors have shown interest about investing in high quality bonds and we consider this to be a good opportunity to satisfy this need and diversify our funding sources."
Pietro Poletto, Head of Fixed Income, London Stock Exchange Group said,
"We are delighted to welcome Tesco Bank as a new issuer on our Order book for Retail Bonds. This week marks the first anniversary of the platform and we are thrilled to see such a high profile name continuing the expansion to the range of bonds available. Investors can now trade nearly 150 corporate, supranational and government bonds on the market, and with the support of issuers like Tesco Bank we look forward to growing the service further in the months and years ahead."
The Tesco Bank 5.2% Bond will be funded on the closing date of 24 February and interest will accrue from this date. Interest is paid in half-yearly instalments and the Tesco Bank 5.2% Bond is intended to return 100% of the face value of £100 on maturity, before dealing costs.
The Tesco Bank 5.2% Retail Bond is not covered by the Financial Services Compensation Scheme (FSCS). In the unlikely event that Tesco Bank defaults or becomes insolvent, customers may lose some or all of their investment.
* If a customer has, or is eligible to set up, a Stocks & Shares ISA or a SIPP which can hold bonds, depending on their individual tax circumstances and subject to any future changes in legislation, they should be able to earn the interest tax free.
** During market hours and subject to normal market conditions. The Tesco Bank 5.2% Bond will not be available to buy directly from Tesco Bank.
For more information and media enquiries please contact:
Tesco Bank press office
+44 (0) 131 274 3630
Notes to Editors:
Notes to editors:
- The retail bond is open to investors in the United Kingdom, Jersey and Guernsey during its offer period.
- The Tesco Bank 5.2% Bond may not be suitable for all investors. Customers should ensure they fully understand the risks and seek independent financial advice.
- Investors should note that the price of the bonds can rise and fall during the life of the investment and the price of the Tesco Bank 5.2% Bond could fall below the Issue price of £100.
- In the unlikely event that Tesco Bank defaults or becomes insolvent, customers may lose some or all of their investment.
- This is an advertisement and not a prospectus for the purposes of EU Directive 2003/71/EC (the “Directive”) and/or Part VI of the Financial Services and Markets Act 2000. A prospectus has been prepared and made available to the public in accordance with the Directive. Investors should not subscribe for any securities referred to in this advertisement except on the basis of information contained in the prospectus. Investors may obtain copies of the prospectus on the website of the London Stock Exchange and in hard copy at the registered office of Tesco Bank at Interpoint Building, 22 Haymarket Yards, Edinburgh EH12 5BH.
- Before buying or selling a Tesco Bank 5.2% Bond, prospective customers should make sure that they fully understand the risks and determine that it is appropriate for them. Tesco Bank does not provide legal, tax, accounting or investment advice in relation to the Tesco Bank 5.2% Bond. Tesco Bank is not responsible for any advice you may receive from any third party. You should be aware that securities involve a variety of risks. Please read the prospectus for the Tesco Bank 5.2% Bond which sets out these risks. Tesco Bank and its affiliates, connected companies, employees or clients may have an interest in securities of the type described in this advertisement.
- This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy, securities to any person in the United States, Australia, Canada, Japan or South Africa or to any other person to whom, or in any other jurisdiction in which, such offer or solicitation is unlawful. The securities referred to herein may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or an exemption from the registration requirements of the Securities Act. Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada, Japan or South Africa or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada, Japan or South Africa. The securities referred to herein have not been and will not be registered under the Securities Act or under the applicable securities laws of Australia, Canada, Japan or South Africa. There will be no public offer of the securities in the United States.
Tesco Bank’s goal is to make banking and insurance easier and better value for people who shop at Tesco. We’ve been around since 1997 and today we help more than 5 million customers manage their money every day. Our 4,000 colleagues serve our customers seven days a week from our three main centres in Edinburgh, Glasgow and Newcastle, and we are also available through online and mobile banking 24/7. Tesco Bank participates in the Chartered Banker Professional Standards Board.
Tesco Bank is a trading name of Tesco Personal Finance plc. Registered in Scotland No. SC173199. Registered Office: 2 South Gyle Crescent, Edinburgh, EH12 9FQ