Sainsbury’s new bond issue to net £350m
Sainsbury’s is planning to generate an extra £350m for its core operating business by securitising a second portfolio of 12 supermarkets, on the back of their successful ‘Project Redwing.’
Under the terms of Sainsbury’s first deal , in March of this year, the store sold a batch of 16 supermarkets to an offshore special purpose vehicle for £340m. Morgan Stanley Dean Witter sold bonds, backed by the income stream from the stores, to investors at a fixed interest rate of 7%.
