Asda Buyout Deal to Include Largest Sterling Corporate Bond Sale

The buyout of U.K. supermarket chain Asda Group Ltd. will include the largest sterling corporate bond sale on record.

Brothers Zuber and Mohsin Issa and TDR Capital will present a 840 million-euro ($1 billion) loan to investors today, according to people familiar with the matter. They’ll follow that up with senior secured bonds worth 2.25 billion pounds ($3.07 billion), the largest ever single tranche sterling corporate bond, data compiled by Bloomberg show. The financing will also include unsecured bonds worth 500 million pounds.

The deal arrives as investors are keen to secure higher yields from the debt of sub-investment grade ...