Australia's Xanadu Wines said today that it has signed an agreement for an A$8m equity facility with GEM Global Yield Fund. GEM is a member of the New York-based private equity group, Global Emerging Markets.

Under the deal, GEM has committed to subscribe for new equity in the company up to a total value of A$8m over the next three years. The drawdown of the facility is at the option of the company and in accordance with the terms and conditions of the facility, Xanadu said.

Sam Atkins, Xanadu managing director, said: "The facility demonstrates recognition of the company's potential and secures access to additional funding for Xanadu should the need arise."

He added: " The facility provides the company with access to small amounts of capital, if and when required, over multiple draw downs, minimising dilution to shareholders. The agreement will enhance the company's ability to develop and expand its business over the next three years."