Future Retail raises $500 million in maiden overseas bond issue
today Jan 15, 2020
Future Group’s Future Retail bonds received total offers at six times higher than its debt on offer as the business raised $500 million (Rs 3,326.4 crore) in its first overseas bond issue which will help to expand its retail footprint.
Big Bazaar owner Future Retail has gone through with its overseas bond issue and issued bonds to international businesses including from the US, ET Bureau reported. The business plans to use this bond issue to expand its borrowing sources and allow it to expand its brick-and-mortar retail footprint.
The bonds, first expected to offer 6% return at five years of maturity, settled on 5.6%. The business saw strong investor demand, ET Bureau reported.
Future Group also recently partnered with global e-commerce major Amazon which purchased a stake in its business Future Coupons to allow it to own a 4.5% stake in the business. Amazon’s investment will total around Rs 1,500 crore.
Future Retail reported a net profit of Rs 171.2 crore for the July to September financial quarter, a slight decrease compared to its profits of Rs 175 crore reported during the same quarter the year before.
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