John Lewis Partnership, one of the largest co-operatives in the UK, has issued its first retail saving bond for its card account customers and staff.

The bond, which is aiming to raise £50m, will last five years and offer a fixed annual return of 4.5 per cent in cash, with a further two per cent paid in John Lewis Partnership gift vouchers. At the end of five years, the John Lewis Partnership will return all the money invested in full.

Those who qualify for the bond can invest between £1,000 and £10,000.

It is the first time John Lewis, who has issued a number of corporate bonds, has raised finance through its staff and customers.

Charlie Mayfield, chairman of the John Lewis Partnership, said: "For many years the Partnership has raised finance via corporate bonds and bank lending. We want to explore alternative ways of raising funds as part of the Partnership's borrowing programme, and to reach out to the retail investor.

"With interest rates and yields close to historical lows we believe our cardholders and Partners will welcome a competitively priced, innovative product of this nature with the added comfort of the John Lewis Partnership brand and reputation."