Future Retail is planning to raise up to $500 million through dollar denominated bonds and proposes to list them on the Singapore Stock Exchange, subject to market conditions. Future Retail in an exchange filing on Monday said company's officials will be participating in road shows from January 7 to 13 covering Singapore, Hong Kong, Los Angeles, New York and London.
On January 4, the company’s board had approved plans to raise funds. In the exchange notification, it had said, "Further to the decision taken in the board meeting held on 12th October, 2019, the board has reconsidered various funding options for the acquisition of the retail infrastructure assets and found it more efficient to fund the same through the dollar denominated borrowings and accordingly, approved raising of long-term funds for the company subject to the applicable regulatory approvals and market conditions."
On Sunday, Fitch Ratings published Future Retail’s expected long-term foreign currency issuer default rating of ‘BB(EXP)’. The outlook is positive. "We have also assigned the proposed senior secured US dollar bond to be issued by Future Retail a rating of ‘BB(EXP)’," said the rating agency.
According to the market participants, Future Retail has mandated Deutsche Bank, Standard Chartered Bank, Barclays, JP Morgan and UBS as joint global coordinators along with SBICAP, Credit Suisse, Emirates NBD Capital and Rabobank as joint lead managers and joint book runners to arrange a series of fixed income investor meetings in Asia, the US and Europe commencing January 7, 2020.