Future Retail Has Raised ₹200 Crore Through Non Convertible Debentures (NCDs)

  • Future Retail on Monday said it raised as many as 200 crores through three-year term redeemable non-convertible debentures (NCDs).

Future Retail on Monday said it raised as many as 200 crores through three-year term redeemable non-convertible debentures (NCDs).

The issuance, consisting of 2,000 protected, classified, listed NCDs of some 10 lakh each for cash equal to Series-II, carries a coupon rate of 9.95 percent. The NCDs will be listed in BSE Ltd’s segment of the Wholesale Debt Market.

In an exchange statement, the firm said it would maintain a 1.10-fold total minimum asset coverage on the gross block of fixed assets of the aggregate face value of outstanding debentures, to be retained at all times throughout the debenture tenor.

According to the document, the debentures, interest on them, the remuneration of the trustees and all other monies relating to them shall be covered by pari passu first payment on the specific immovable property and tangible fixed assets of the Company, having minimum security cover as given above during the tenure of the debentures.

In the event of delay in paying interest amount and/or principal amount on the due date(s), the issuer will pay additional interest of 2 percent per annum in addition to the coupon rate payable on the NCDs, on certain amounts due for the defaulting period, the company said.

Future Retail runs retail chains like Big Bazaar, fbb (Fashion @ Big Bazaar), the EasyDay Club, Heritage Fresh, and Hypercity.

“The Board also allowed the Board of Directors to decide on issues and transactions relating to the above-proposed issue and allocation of NCDs, including but not limited to the finalization and acceptance of the terms and conditions of issue, the number of NCDs and the timing of the issue from time to time,” stated the filing.

The funds will primarily be used to offset existing high-cost current or near-term maturity debt requirements for the company.

The move comes after Kishore Biyani, founder of Future Retail, defaulted on loans in March and a plunge in its share price.

Many rating agencies including Standard & Poor’s and Fitch have downgraded Future Retail’s credit scores following the default.

Future Retail operates more than 1,500 stores in 400 cities which cover more than 16 million square feet of retail space. In addition to small store neighborhood supermarket outlets, EasyDay Club and Heritage Fresh, it has big format stores, Big Bazaar, their flagship chain.

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career. Highly enthusiastic about brands and startups, he aims to be a travel content creator.

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