In exchange, Food Empire will issue 5-year redeemable exchangeable notes.

Private equity fund manager Ikhlas Capital will invest US$40 million in Food Empire Holdings (FEH) in exchange for five-year redeemable exchangeable notes (REN) with an interest rate of 5.5%.

Ikhlas Capital will invest in FEH through its wholly-owned special-purpose vehicle.

The notes can be converted into new ordinary shares in the special purpose vehicle's capital and/or exchanged for new ordinary shares in FEH's capital.

The equity manager will purchase the notes through its vehicles, Merit Genesis and Apex Genesis.

FEH said the capital injection from Ikhlas Capital will accelerate its growth in Southeast and South Asia.