Mumbai : Kishore Biyani-led Future Group plans to issue dollar-denominated bonds worth around $300 mln, in a first overseas bond sale by the entity, sources in the know told Cogencis. The bonds will be issued through a special purpose vehicle floated out of Singapore and will be guaranteed by the group company Future Retail Ltd.
The proceeds from the dollar bond sale may be used by Future Retail to fund the acquisition of HyperCity Retail Ltd, a subsidiary of Shoppers Stop Ltd, for 6.55 bln rupees, one of the sources said. When asked, a spokesperson from Future Group said the company does not comment on “market speculation”. The company is looking at a maturity of five years for the proposed bonds and the roadshows for the same are likely to start in November, a source said.
The company will buy 100% shares of HyperCity Retail through a combination of share allocation and cash consideration. Future Retail expects to complete the acquisition of HyperCity in three to five months. Apparel retailer Shoppers Stop holds 51.1% stake in HyperCity and as part of the deal, it will be allotted 4.8 mln shares of Future Retail.
