Future Retail Raises $500 Million From International Bond Market
A shopper walks through an aisle displaying personal care goods at a Big Bazaar hypermarket, operated by Future Retail Ltd., in Mumbai, India. (Photographer: Dhiraj Singh/Bloomberg)

Future Retail Raises $500 Million From International Bond Market


Kishore Biyani-led Future Retail Ltd. has raised $500 million via dollar-denominated bonds, which according to the company is the first international bond deal from the retail and consumer space in India.

"The company has successfully priced a $500 million Fixed Rate Senior Secured 144A/Reg S Bond for a five-year (non-call three-year) tenor at 5.600 percent," the company said in a regulatory fiiing on Wednesday.

"We are overwhelmed by the strong response of the global investor community which is a testament to our strong credit story. This transaction will help us further diversify our sources of funding," Rakesh Biyani, joint managing director at the company, said in the regulatory filing.

Proceeds from Future Retail bond issue will be utilised to purchase store assets from Future Enterprises Ltd., a move which will help significantly improve Ebitda margin profile of Future Retail, Biyani added.

The firm intends to use all of the proceeds to meet capital expenditure for acquisition of certain in store retail infrastructure assets of Future Enterprises.

The notes will be listed on the Singapore Exchange Securities Trading Ltd.

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