Here’s what you need to know
Retail investors can now access Tesco bonds on WiseAlpha, the UK’s first online lending platform that gives everyday investors access to high yield institutional bond and loan investments.
WiseAlpha is giving access to Tesco’s £300mn institutional bonds available on its online lending platform. Investors can ‘buy’ some of this debt – any amount from £100 upwards
generating cash income of 4.8 per cent per annum. The bond matures in 2042 but investors can cash in their bonds early via WiseAlpha’s secondary market.
Founded in 1919, Tesco is the UK’s largest grocery retailer (according to Kantar Worldpanel). Also one of the largest retailers in the world, Tesco is listed on the London Stock Exchange’s FTSE 100 Index and has a market capitalization of approximately £14.23bn. The company’s revenue grew 4.2 per cent in the financial year 2016/17 to £49.9bn and Operating Profit grew 29.9 per cent to £1.28bn.
Rezaah Ahmed, CEO of WiseAlpha, says “Our investments in large, established brand name companies such as Tesco, will appeal to the retail investor looking to do more with their money and earn a regular contractual income without taking the same price and volatility risk as the shares.”
WiseAlpha’s online lending platform gives retail investors access to corporate debt (through loans and bond products). Its team of financial experts’ hand pick investments in blue-chip companies. Most investments are secured on the assets of the company and this collateral backing offers a degree of protection for investors.
The variety of bonds on the site mean that some also generate higher yields of up to 9 per cent. Before WiseAlpha, these sorts of investments were only previously available to pensions funds, investment banks and ultra-high net worth individuals with a minimum investment of £100,000 per single investment.