Finance
Buyers of Walmart’s U.K. Brand Weigh Tying Funding to ESG Goals
- Asda purchase by TDR, Issas backed by 3.65 billion-pound debt
- ESG pricing ratchets seldom used on European leveraged buyouts
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The buyers of Walmart Inc.’s U.K. arm are considering linking the interest rate on loans funding the acquisition to environmental, social and governance targets, according to people familiar with the matter.
Private equity firm TDR Capital and billionaire brothers Mohsin and Zuber Issa plan to raise debt worth 3.65 billion pounds ($4.9 billion) to buy grocery chain Asda Group Ltd. A Barclays Plc-led bank group has started to sell some of the loans to bank lenders, and the rest -- comprising bonds and loans -- may be sold to investors early next year.