The US retail giant Walmart is raising $4 billion via debt securities with the first series of notes maturing in 2024 are for $1.5 billion and the remaining two are for $1.25 billion each, the company’s filings with the US Securities and Exchange Commission over the course of April 16 and 17 sourced by business signals platform Paper.vc showed.
“Walmart indicated that the current debt proceeds will be used for general corporate purposes, which may include repayment, refinancing or replacement of maturing debt,” Paper.vc founder Vivek Durai told Financial Express Online.
The company debt to equity ratio stood at 0.63 with long term debt of $50.20 billion and shareholder’s equity worth $79.63 billion as on January 31, 2019, as per economic research website Macrotrends.net.
Walmart’s last such raise was of $16 billion debt issue in June 2018 that it used to buy Flipkart. While the acquisition was initially intended to be financed via a mix of debt and cash but the $16 billion debt issue matched the acquisition value and indicates a change in strategy, Durai said.
Walmart CEO Doug McMillon is currently in India to meet Flipkart’s leadership team and employees and take stock of the current business is delighted with how Flipkart is making progress to serve India’s next million of customers coming online.
“He is delighted with the progress the team is making to take e-commerce to next 200-300 million customers in India, and bring a great selection through right affordability construct to consumers in the country,” Rajneesh Kumar, Chief corporate affairs officer, Flipkart Group had said in a company statement.
Flipkart competes with the world’s largest online retailer Amazon’s India unit for supremacy in India’s e-commerce market that is expected to be worth $150 billion in size by 2022 while the number of internet users in India might grow by almost 2X from 450 million in 2017 to 850 million in five years, according to a report by Nasscom and PwC India in October last year.