John Lewis bond closes after less than two weeks

Published by Rebecca Rutt on 07 March 2011.
Last updated on 22 March 2011

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John Lewis has closed its 6.5% bond after reaching its investment target of £50 million within less than two weeks.

The bond offered customers the chance to invest in the store for the first time and of the 6.5% interest, 4.5% is paid in cash, with the remaining 2% paid in John Lewis vouchers.

The deal was open to 70,000 staff and 1.5 million Partnership and Account cardholders and the original deadline was 11 April for applications.

Charlie Mayfield, chairman of the John Lewis Partnership, says: "The reaction of our cardholders and Partners has been extremely encouraging. To have reached £50 million of subscriptions in less than two weeks after launch shows that our customers and Partners valued a mix of gift vouchers and cash return totalling 6.5%."

John Lewis declined to confirm whether it will launch  any further investment products, but hinted that it wasn't out of question.

The chain follows hot on the heels of supermarket Tesco which launched a 7.5 year bond in February, paying 5.2%.

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