ASDA - comment

ASDA needs to raise cash to fund price support, and management had already said that Sale and Leasebacks could be part of that. The recently issued 2031 SSNs are yielding just under 8%. We would expect the yield on the new £400m to be no more than 8%, which would result in a rent of £32m. ASDA needs to maintain the level of price support, but improved volumes will take a few more quarters to show in the financial results.