Tesco to issue mortgage bond

Tesco continues to take advantage of the confidence investors have in its cash flow. Along with selling off warehouses it occupies to institutionals, it’s now set to raise €1.1bn (GBP 950m) by creating a mortgage bond backed up by the income of 41 of its stores in the UK. Experts point out this isn’t your standard CMBS structure, because the assets behind the 30-year bond are all owned by a single company. The FT notes this is the fourth time the retailer has tapped the capital markets in this way in the past 18 months.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s