Tesco Bank withdraws second issue of RPI linked savings bond
Thursday, 15 December 2011 05:23
Tesco Bank has withdrawn its second retail bond after taking orders of £60 million.
The eight-year retail bond which is linked to the retail prices index (RPI) was supposed to be open for orders until 10am on Friday December 9th and the retail bond will be issued to customers on December 16th.
The retail bond was only available through stockbrokers and wealth managers and the £60 million fund was exhausted in ten working days.
Tesco is aiming to increase the deposits it holds to allow it to diversify into other financial services, including the mortgage market subject to regulatory approval.
Over the term of the bond investors will receive interest twice each year at one per cent above RPI. Tesco Bank has committed to repaying depositors no less than the full face value of the bond.
Benny Higgins, Chief Executive of Tesco Bank, commented: "We are delighted by the excellent response by investors to what will be the second issue of Tesco Bank Retail Bonds which once again exceeded our target."
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