'Dim Sum' Chinese Renminbi Bond Issue

RNS Number : 0513N

Tesco PLC

25 August 2011

 



25 August 2011

TESCO LAUNCHES 'DIM SUM' CHINESE RENMINBI BOND ISSUE

Tesco has today announced the launch of an offshore Chinese Renminbi denominated bond issue in Hong Kong and has raised CNY725m (around £70m) of funding. The maturity is three years and has a semi-annual coupon of 1.75% per annum. The issue is expected to be rated 'A-' by S&P.

The proceeds from the bond issuance, the first of its kind by an international retailer, will be used to support the growth of Tesco's retail operations in China. The decision reflects Tesco's confidence in the Chinese market and strong commitment to growing a prosperous local business.

Tesco Chief Financial Officer, Laurie McIlwee said:

"China is an important market for us and represents a great growth opportunity. This is a new and innovative way of funding our business as it continues to grow and demonstrates our commitment to China."

Ends

Enquiries

For more information, please contact:

Media:

- Trevor Datson, Group Media Director, on [phone]

- Greg Sage, International Corporate Affairs Director, on [phone]

Investors:

- Steve Webb, Investor Relations Director, on [phone]

- Chris Griffith, Investor Relations Director, on [phone]

Tesco is the third largest retailer in the world with more than 5,380 stores and more than 492,000 employees across 14 markets in Asia, Europe and the US.

Notes:

1. This press release is for information purposes only and does not constitute a prospectus or offering memorandum or an offer to acquire any securities and is not intended to provide the basis for any credit or any other third party evaluation of the aforementioned securities (the "Securities") or the transaction (the "Transaction") and should not be considered as a recommendation that any investor should subscribe for or purchase any of the Securities. Neither this press release nor any other documentation or information (or any part thereof) delivered or supplied under or in relation to the Transaction or the Securities shall be deemed to constitute an offer of or an invitation to purchase or subscribe the Securities. This press release does not constitute an offer to sell, exchange or transfer any securities and is not soliciting an offer to purchase, exchange or transfer any securities in any jurisdiction where such offer, sale, exchange or transfer is not permitted or is unlawful.

2. Any investor who subsequently acquires the Securities must rely solely on the final prospectus published by Tesco PLC (the "Company") in connection with the Transaction, on the basis of which alone purchases of or subscription for the Securities may be made.

3. The securities have not been registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"), and no securities shall be offered or sold in the United States or to U.S. persons (as those terms are defined in Regulation S under the Securities Act) unless an exemption from the registration requirements of the Securities Act is available. No public offering of the Notes will be made in the United States or elsewhere and the Company does not intend to register any part of the offering of any Notes in the United States or elsewhere.

4. This document is for distribution in the European Economic Area only to persons who meet the criteria of qualified investors within the meaning of the Prospectus Directive (2003/71/EC).

 

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