Chandra: Going global

Mumbai, Feb. 5: Zee Telefilms is planning to raise funds either by way of debt or equity in domestic or international capital markets.

The Subhash Chandra-owned company today informed the stock exchanges that a board meeting will be held on February 11 to consider and approve raising of funds by way of convertible or non-convertible debt and/or equity, in domestic or international capital markets.

Observers feel that the proceeds could be used for re-financing the company’s debt or realising its expansion plans.

Even as domestic interest rates remain stable, various companies are now eyeing cheap funds from overseas markets. This follows relaxation of the external commercial borrowing (ECB) and foreign currency borrowing rules by the Centre.

Moody’s Investor Service also raised India’s foreign currency rating to Ba3 from Ba1 last month. Both these measures are expected to bring down borrowing costs for domestic firms.

Reliance Industries had raised $250 million by a syndicated loan through a consortium of various international banks. The amount was raised at an interest rate of 90 basis points above Libor.

According to reports, Punjab National Bank (PNB) and Bharti TeleVentures are in the process of raising funds from overseas markets. Bharti had announced its plans of raising over $500 million through ECBs next fiscal. PNB is planning to raise a syndicated loan of over $200 million.

The merger of ETC Networks with Econnect India Ltd, arms of Zee, is expected to be completed in five to six months.