Asda's Debt Interest Bill Set to Surge Above £400m

Surging Interest Rates and Switch from Fixed to Floating Rate Loans in February to Increase Debt Interest Bill by £30m

Asda's debt interest bill is set to rise above £400m due to surging interest rates, putting pressure on the private equity-owned supermarket.
Half a billion pounds of loans are set to switch from a fixed to floating interest rate in February, leading to an increase of as much as £30m in Asda's debt interest bill.
Asda's CFO, Michael Gleeson, and co-owner, Mohsin Issa, appeared before the Business & Trade Committee to answer questions about the company's finances and the role of private equity in the supermarket sector.
Issa insisted that Asda's finances are solid and that the supermarket can cover its debts, despite the high levels of borrowing.
The Issa brothers have been selling off assets over the past year to pay down borrowings accrued by their petrol station empire, EG Group.