According to reports, the Malaysian subsidiary of UK retail giant Tesco is planning to raise MYR3.5bn (US$1.04bn) on the Malaysian market through a debt issue.
Tesco Stores (Malaysia) Sdn Bhd would be issuing conventional and Islamic paper, according to inside sources cited in the report. The company plans to issue paper with maturities of up to 15 years, it was further stated.

When contacted by just-food, Tesco said that the reports were speculative and declined to comment further.

Under Malaysian law, a combination of medium-term notes and commercial paper allows for the issuance of debt with maturities of up to seven years. However, if it is established separately from commercial paper, a medium-term note issue would allow the sale of paper with maturities of over seven years.

Tesco currently operates 18 stores in Malaysia but is thought to be planning to open a further 40 stores over the next five years.