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Future Retail raises US$ 500 million from international bond market

IBEF:  January 16, 2020

Kishore Biyani-led Future Retail has raised US$ 500 million via dollar-denominated bonds.

"The company has successfully priced a US$ 500 million Fixed Rate Senior Secured 144A/Reg S Bond for a 5-year (non-call 3-year) tenor at 5.60 per cent," according to the company’s regulatory filing.

According to the company, this bond transaction also marks the first international bond deal from the retail and consumer sector space in India.

"We are overwhelmed by the strong response of the global investor community which is a testament to our strong credit story. This transaction would help us further diversify our sources of funding", said Future Retail Limited (FRL) Joint Managing Director Mr Rakesh Biyani.

He added that the funds will be used to purchase store assets from Future Enterprises Ltd which will further aid in improving EBITDA margin profile of FRL.

The company plans to utilise all of the proceeds to meet the capital expenditure for the acquisition of certain instore retail infrastructure assets from Future Enterprises Limited.

The notes will be listed on the Singapore Exchange Securities Trading Limited (SGX- ST).

"The transaction witnessed 37 per cent participation from Asia, 42 per cent from the US and 21 per cent from EMEA with 84 per cent investment from long haul funds, 8 per cent from private banks, 5 per cent from insurance/pension funds and 3 per cent from banks and others," according to the filing.

There has been strong demand from most of the blue-chip names amongst the largest funds across the globe.

On this issue, Deutsche Bank, Standard Chartered Bank, Barclays, J P Morgan and UBS played as Joint Global Coordinators and Joint Book runners. SBICAP, Credit Suisse, Emirates NBD Capital and Rabobank acted as Joint Bookrunners, whereas A K Capital acted as Financial Advisor to the Issuer.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.