Tesco has raised $2 billion (£990 million) of debt in its first dollar-denominated bond issue, a week before the supermarket giant begins an aggressive bid to establish itself in the United States by opening six stores in southern California under the Fresh & Easy brand.

Tesco said yesterday that the bond issue, its biggest for 19 months, reflected an attempt to broaden its investor base in the US. It added that the proceeds would be used for “general corporate purposes” as well as refinancing other short-term loans.

Speculation of the debt-raising, jointly arranged by Citigroup and JPMorgan Cazenove, emerged late on Monday night. The issue includes ten-year notes paying 5.5 per cent interest and 30-year notes offering a payback of 6.15 per cent.

Tesco has already revealed plans to invest up to £250 million a year in the US as it strives to build up a business that it believes eventually could rival the size of its UK operation.

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