On the 5.6 percent notes that mature in 2025, interest was due in the amount of $14 million. The price of the notes increased by 1.4 cents to 86.3 cents, a one-month high.
Future Retail Ltd., an indebted Indian retailer, has processed a dollar bond interest payment that was due on January 22. The news sent the company’s notes and shares soaring.
When Bloomberg News inquired about the interest charge, a Future Community spokesperson said, “It has been processed at our end.”
According to Bloomberg reports, the interest due on the 5.6 percent notes due in 2025 was about $14 million. According to Bloomberg, the price of the notes jumped 1.4 cents to a one-month high of 86.3 cents after the news. The company’s Mumbai-listed shares were up 5.5 percent as of 1:10 p.m. on Friday in Mumbai, setting a new high for the week.
Last month, the company suggested making the payment within a 30-day grace period. Last year, Future skipped an interest payment on the same bonds before repaying the debt later.
Future is involved in a long-running legal dispute with Mukesh Ambani’s Reliance Industries and Future’s affiliate, Amazon.com. Amazon has demanded that Reliance Industries’ takeover be stopped. Meanwhile, the pandemic has exacerbated a cash crunch at Future due to long-term competition from e-commerce firms.