ABN Amro has capitalised on its lucrative role advising Wm Morrison by winning the sole mandate to arrange a £1.75bn (€2.5bn) loan to help finance the UK supermarket group's £3bn acquisition of Safeway.

The loan, which is one of the largest deals in the UK corporate sector, will comprise a £750m 18-month term loan as well as a £1bn revolving credit facility. ABN Amro will syndicate the loan to other banks in early 2004, and the deal is expected to close in the first quarter.