Future Retail plans to raise up to Rs1,500 crore through debt instruments to replace high cost loans and to invest on brand building and marketing. The company is seeking approval from its shareholders for the proposal of raising up to Rs1,500 crore through issue of non-convertible debentures on private placement basis, Future Retail said in a filing to the BSE.
"The amount to be raised by the way of issuing non-convertible debentures on a private placement basis however shall not exceed Rs1,500 crore in aggregate," the filing said.
Explaining the rationale behind the move, the company said: "With overall reduction in base lending rate by the banking sector, there is further scope to borrow at a reduced rate of interest.""The present borrowing initiative would also help the company to replace some of its present high cost near-term maturity debts.