Radico Khaitan pays out to redeem foreign currency bonds

Radico Khaitan pays out to redeem foreign currency bonds

Radico Khaitan has said that it will have cash available for expansion, despite paying out to redeem the remainder of its foreign currency convertible bonds.

The Indian spirits group, which operates a joint-venture with Diageo, said today (25 July) that it has paid US$44.2m to redeem all outstanding foreign currency bonds that were part of a $50m, five-year bond issue in July 2006. The group had previously paid $16.1m to redeem some of the bonds.

It paid for the redemption via a new seven-year loan facility, it said.

Radico Khaitan's CFO, Dilip Banthiya, said that the move would not jeopardise cashflow. "Going forward, the company expects is cash flows to be strong enough to meet its growth plans and financial obligations," he said.