Zee Entertainment Approves $239 Million FCCBs Allotment

Zee Entertainment has approved the allotment of foreign currency convertible bonds (FCCBs) worth USD 239 million. The decision follows approval from the shareholders to raise Rs 2,000 crore through various routes, marking the first fundraising round after Sony Corporation's deal termination.

Zee Entertainment Enterprises Limited announced on Tuesday that it has approved the allotment of foreign currency convertible bonds (FCCBs) amounting to USD 239 million.

According to a regulatory filing, the allotment will be made on a private placement basis to Resonance Opportunities Fund, St John's Wood Fund Ltd, and Ebisu Global Opportunities Fund. The bonds will mature in 10 years.

During a board meeting on July 16, ZEEL had cleared the proposal to raise funds through FCCBs with a 5 percent coupon rate. Investors opting to convert their bonds into shares will do so at Rs 160.20 per share. This move comes after shareholders approved a plan to raise Rs 2,000 crore through various financial instruments earlier in July, making it the first such initiative following the termination of a merger deal with Sony Corporation.

(With inputs from agencies.)