Future Retail Ltd gets approval to raise up to Rs 650 crore via NCDs

Kishore Biyani-led Future Retail Ltd, which runs the Big Bazaar chain of stores, informed the stock exchange that the board has permitted the company to raise up to Rs 650 crore through non-convertible debentures (NCDs).

The retail chain can raise this amount in one or more tranches. This approved secured /unsecured, redeemable, non-convertible debentures (NCDs) is available on a private placement basis. “The board has also authorised the Committee of Directors to decide on matters and transactions relating to aforesaid proposed issuance and allotment of NCDs including but not limited to finalisation and approval of terms and conditions of issue, number of NCDs and timing of the issue from time to time,” the company said in a regulatory filing.

The company wants to use this funds to replace its existing high-cost current or near-term maturity debts requirements.

In January this year, the company had raised USD 500 million through dollar-denominated bonds. "The company has successfully priced a $500 million Fixed Rate Senior Secured 144A/Reg S Bond for a 5-year (non-call 3-year) tenor at 5.600 per cent," the company said in a regulatory filing that time.