Bank |

Tesco Bank Retail Bond Smashes Expectations

– Raises £125 million against initial target of £50-100 million –

Tesco Bank has closed its first retail bond, raising £125 million, with demand from thousands of investors smashing expectations. This is the highest amount raised by a pure retail bond since the launch of the Order Book for Retail Bonds (ORB) by the London Stock Exchange in February 2010.

Tesco Bank has closed its first retail bond, raising £125 million, with demand from thousands of investors smashing expectations. This is the highest amount raised by a pure retail bond since the launch of the Order Book for Retail Bonds (ORB) by the London Stock Exchange in February 2010. 

The Tesco Bank 5.2% Retail Bond was issued as part of Tesco Bank’s strategy to diversify its funding base ahead of a planned move into the mortgage market this summer.  

Benny Higgins, Chief Executive of Tesco Bank commented,

“Our first retail bond has been a huge success, attracting interest from a broad customer base as demand widely surpassed our expectations. As we look to diversify our sources of funding, the appetite for our first bond has given us renewed confidence in the retail bond market.” 

The bond will 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 and prices will be available on the London Stock Exchange’s ORB.*

During market hours and subject to normal market conditions.

--ENDS--

For more information and media enquiries please contact:

Tesco Bank press office

+44 (0) 131 274 3630 

About Us:

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

You may also like