ASDA - comment

The sale and leaseback is cheaper than bank debt or issuing SSNs. ASDA’s 2030 SSN yields around 9.5%, whereas a sale and leaseback deal will be closer to 6.5% - 7%. A £400m deal would add £26m to the interest bill, assuming a 6.5% yield. Raising so much cash now points to ASDA looking to accelerate the turnaround plan and initiate further price subsidies. A more aggressive stance from ASDA would heighten the chance of a price war, but we expect the measured competitor response to continue, for now.

https://www.retailgazette.co.uk/blog/2025/05/asda-sale-leaseback/