FT Issa brothers

Zuber (left) and Mohsin Issa

EG Group’s owners have raised hundreds of millions of pounds through a share issue that could help fund their £6.8bn buyout of Asda.

EG Group founders Mohsin and Zuber Issa, and the private equity firm TDR Capital, raised the funds at the Jersey holding company through which they own EG Group.

On Thursday, the offshore vehicle sold new preference shares to the Abu Dhabi Investment Authority (Adia) and two Canadian pension funds, the Alberta Investment Management Corporation and PSP Investments. Holders of preference shares receive interest payments but do not hold a stake or any voting rights in the company.

According to the Financial Times, they did not disclose what they would use the funds for during a call with lenders on Thursday, but several bondholders said it could help them fund the supermarket deal.

It said EG Group declined to comment on whether its owners would use the funds for the Asda deal, but said issuing the preference shares would “not result in any change to the ownership” of the company and “will have no effect on our business”.