Tesco Plans Benchmark Commercial Mortgage Bond

29th Jun 2010 13:46

LONDON (Dow Jones)--U.K. retailer Tesco PLC (TSCO.LN) is planning to issue a benchmark bond backed by a commercial mortgage loan, a banker involved in the deal said Tuesday. The collateral for the loan is the leasehold interest in 41 U.K. commercial properties, all of which are let to Tesco-related entities, according to a ratings report from Moody's Investors Service, which has assigned a provisional A3 rating to the bonds. Goldman Sachs Group Inc. and HSBC Holdings PLC are acting as co-arrangers. The deal is expected to price later Tuesday, or Wednesday. The bonds will be issued by a vehicle called Tesco Property Finance 3 PLC. -By Mark Brown, Dow Jones Newswires; + 44 (0)207 842 9485; [email protected] (END) Dow Jones Newswires June 29, 2010 08:46 ET (12:46 GMT)