BackFuture Consumer raises Rs200 crore via NCDs from UK’s CDC Group
Future Consumer says the funds will be used for capital expenditure, long-term working capital needs, and to support business growth
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Mumbai: Future Consumer Limited, the FMCG arm of Kishore Biyani’s Future Group, has raised Rs200 crore in non-convertible debentures (NCDs) from the CDC Group Plc., the UK government’s development finance institution, the firm said in a statement on Thursday.
The NCDs have a 7-year tenure and will be used for capital expenditure, long-term working capital needs, and to support business growth, FCL said in the statement.
Under the debt terms, FCL will pay a lower interest rate in the first 2 years and will begin repayment only by year 3, according to the statement.
“FCL and CDC will also explore, evaluate and implement areas of cooperation to enhance development impact by providing support across FCL’s network of shareholder farmers, suppliers, and customers, among other areas, in a mutually agreed time frame," FCL said in the statement.
As of 31 March 2017, FCL had total liabilities worth Rs552 crore, as per the company’s latest annual report. In the quarter ended December 2017, it earned Rs789 crore as revenue and made a net loss of Rs3 crore. The company sells homegrown brands of food, beverages, home and personal care products. CDC Group focuses its investments on South Asia and sub-Saharan Africa.
Shares of Future Consumer closed at Rs61.15 per share on BSE, down 3.17%, while the benchmark BSE Sensex closed at 34,297.47 points, up 0.41%. The news was announced after market hours.
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