Future Consumer Limited (FCL) announced that it had joined hands with CDC Group plc, UK's Development Finance Institution (CDC) to raise Rs 2,000 million through Non- Convertible Debentures (NCDs) primarily to finance capex, long-term working capital and support the growth of the business.
Through this facility, FCL raises funds with a long tenure of seven years. Further, this facility has lower cash coupon rates in the first two years coupled with repayments starting only after three years. The back-ended nature of the facility shall also augment the cash flows of the Company in the initial years of the facility.
CDC Group plc is UK's development finance institution. Wholly owned by the UK Government, it invests in sub-Saharan Africa and South Asia with the aim of supporting economic development to create jobs. FCL and CDC will also explore, evaluate and implement areas of co-operation to enhance development impact by providing support across FCL's network of smallholder farmers, suppliers, customers amongst other domains in a mutually agreed timeframe.
Mr. Kishore Biyani, Vice Chairman, Future Consumer Limited said: "We are pleased to be associated with an esteemed institution like CDC, which is the world's oldest Development Finance Institution (DFI). CDC joins other marquee institutional investors such as International Finance Corporation, Proterra Partners, who have recently partnered in the growth journey of our Company. As an integrated farm to plate Company, we at Future Consumer Limited responsibly impact the life of farmers, producer groups, consumers and every stakeholder in our ecosystem. We along with CDC plan on working towards (the) furtherance of this agenda."
Mr. Srini Nagarajan, Managing Director and Head of South Asia for CDC said: "By providing long-term finance, we are delighted to support FCL's ambitious growth, and develop a long-term partnership with them to develop a range of programs that will improve sustainability. For example, we will join forces to help improve the livelihoods of the more than 19,000 smallholder farmers across FCL's network. Initiatives to improve yields and productivity and to reduce wastage by modernizing warehousing and storage facilities will not only boost the business but will also lead to better incomes for farmers."