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Back by Popular Demand, Tesco Bank Launches new 5.00% 8.5 year Sterling Fixed Rate Bond

Tesco Bank is issuing its third retail bond (the “Bond”) aimed at retail investors. This follows two successful retail bonds in 2011, both of which exceeded initial demand and raised £185m in total.

The Bond will be issued by Tesco Bank and can be bought and sold at any time before maturity* exclusively through stockbrokers with a minimum initial investment of £2,000. Investors should seek independent advice from their tax adviser regarding the ISA and SIPP eligibility of the Bonds.

The Bond is intended to pay a fixed rate of interest of 5.00% each year for as long as investors hold them, until 21 November 2020 when the Bond is intended to return 100% of the face value of £100**.  The Bond is expected to be listed on the Official List of the UK Listing Authority and admitted to trading on both the regulated market of the London Stock Exchange the London Stock Exchange’s Order Book for Retail Bonds.

Benny Higgins, Chief Executive of Tesco Bank commented,

“Retail bonds form an important part of our funding strategy as we move towards offering a full retail banking service for Tesco customers.

We are delighted with investors’ reaction to the retail bonds launched last year and the way they continue to trade.”

The Bond will be funded on the closing date of 21 May 2012 and interest will accrue from this date. Interest of £2.50 is paid twice a year on each £100 face value of Bond held until the maturity, starting from 21 November 2012.

The Bond is not covered by the Financial Services Compensation Scheme (“FSCS”). In the event Tesco Bank cannot pay its debts in full or goes out of business, investors may lose some or all of their investment.

--ENDS--

For more information and media enquiries please contact:

Tesco Bank press office

+44 (0) 131 274 3630 

Notes to Editors: 

* During market hours and subject to normal market conditions. The Bonds will not be available to buy directly from Tesco Bank.  Authorised Distributors are Barclays Stockbrokers, Charles Stanley, Killik & Co, Redmayne-Bentley LLP, Selftrade (Execution Only), Smith and Williamson, Stocktrade (a division of Brewin Dolphin Ltd) and Williams De Broe. Investors can check prices on the London Stock Exchange website, just like shares.  Further information can be found at www.londonstockexchange.com/newissues.
**  before any deductions for dealing costs or other charges that may apply.

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

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