Bollywood filmmaker launches 6.5% retail bond

30 September 2014

Indian filmmaker Eros International has launched a seven-year retail bond paying 6.5% in a bid to raise up to £100 million through the London Stock Exchange's (LSE's) Order Book for Retail Bonds (ORB).

Eros International's bond opened for subscription on Thursday and is available to private investors for a minimum investment of £2,000 and then in multiples of £100.

The bond pays an annual yield of 6.5% with the first payment expected to be made on 15 April 2015 and then every 15 October and 15 April thereafter until the bond matures on 15 October 2021.

Issuances of UK retail bonds have slowed this year. To find out why, and why demand for the products is still strong, read: Retail bond lenders struggle to find borrowers.

Global distribution

Founded in 1977, Eros International produces and distributes Indian language films globally, typically producing over 70 films per year that are released in theatres, on television and the internet. The firm is listed in New York and Mumbai and has a market capitalisation of over $800 million (£490 million).

Commenting on the launch, Jyoti Deshpande, chief executive officer of Eros, says: "We are delighted to announce the launch of Eros's debut retail bond in the UK. This bond provides exposure to a new sector for retail bond investors and will also enable Eros to diversify the sources and currency denominations of its funding."

The bond is expected to be listed on the LSE's ORB on 15 October. Authorised distributors include Money Observer's sister website Interactive Investor, as well as Barclays Stockbrokers and Redmayne-Bentley Stockbrokers.

Since its launch in 2010 the ORB has launched 45 new bond issues and six taps of existing issues, raising over £4.3 billion for listing firms.

This article was written for our sister website Money Observer


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