U.K Retailer Tesco plans to securitize credit card receivables via its Delamare Cards trust, according to a Standard & Poor’s presale report.

Two class of ‘AAA’ rated class A notes will be issued under the series 2015-1 transaction. Sizing on the notes will be determined based on investor appetite.  The notes will benefit from 11.1% credit support

Citigroup is the lead arranger. Tesco’s subsidiary, Tesco Personal Finance, originated the credit card receivables via Visa and MasterCard accounts. TPF was established in 1997 as a joint venture between Tesco and RBS. In December 2008, Tesco acquired RBS' 50% shareholding.

The pool of collateral comprises approximately £2.95 billion ($4.4 billion) of eligible account receivables, which are on either the Visa or MasterCard payment processing network. TPF has significantly increased the size of its credit card portfolio, primarily through offering longer-period 0% balance transfers.

This will be the issuer’s fourth transaction from the Delamare trust.

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