Asda Buyout Deal to Include Largest Sterling Corporate Bond Sale

Package comprises bonds, loans equivalent to nearly $5 billion
Debt backs acquisition of retailer by Issa brothers, TDR

A customer holds a basket of groceries inside an Asda store, trialing new sustainability initiatives, in Middleton, U.K., on Thursday, Oct. 29, 2020. Walmart Inc. is pulling out of the cutthroat U.K. grocery market after 21 years, agreeing to sell control of grocer Asda to TDR Capital and two brothers who made their wealth in gas stations.Photographer: Anthony Devlin/Bloomberg

Provide news feedback or report an error

Confidential tip?

Send a tip to our reporters

Site feedback:

Take our Survey

By Ruth McGavin and Laura Benitez

February 3, 2021 at 10:04 AM UTC

Updated on

February 3, 2021 at 11:23 AM UTC

This article is for subscribers only.

The buyout of U.K. supermarket chain Asda Group Ltd. will include the largest sterling corporate bond sale on record.

Brothers Zuber and Mohsin Issa and TDR Capital will present a 840 million-euro ($1 billion) loan to investors today, according to people familiar with the matter. They’ll follow that up with senior secured bonds worth 2.25 billion pounds ($3.07 billion), the largest ever single tranche sterling corporate bond, data compiled by Bloomberg show. The financing will also include unsecured bonds worth 500 million pounds.