Financial Times FT.com

Tesco fundraising offers hope to CMBS

By Gillian Tett in London

Published: June 17 2009 19:25 | Last updated: June 17 2009 19:25

The global securitisation market glimpsed a rare chink of light on Wednesday when Tesco, the UK retailer, raised £430m ($702m) of funds by selling a crude form of commercial mortgage-backed bond to European pension funds and other investors.

The deal, which was three times subscribed, marked the first time that a so-called CMBS has been sold to private sector investors in Europe or the US since the credit crisis erupted.

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