Tesco Raises $2 Billion in First U.S. Bond Issue

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Tesco Raises $2 Billion in First U.S. Bond Issue

10/31/2007
LONDON - With the first of its Fresh & Easy stores poised to open in the U.S. Nov. 8, Tesco plc here said it priced a $U.S. denominated issue of notes raising net proceeds of about $2 billion, which it said will be used to refinance some debt and "for general
corporate purposes."

The new debt issue represents Tesco's first U.S. dollar bond issue. "Tesco have chosen to issue in the U.S. dollar market because they want to introduce U.S. bond investors to Tesco, establish themselves in a new market, and diversify their investor base," the grocer said in a statement.

According to a Reuters report, Tesco has said it plans to invest 250 million pounds a year in the U.S. market, in support of its ambition to build a business at least equal in size to its British operation. Its Web site already shows the location of more than 120 U.S. stores.