26th September 2014
Indian film company Eros International, responsible for Bollywood blockbusters, has launched a retail bond offering interest of 6.5% for seven years.
The bond will pay interest (a coupon) of 6.5% twice a year every April and October for seven years until October 2021. Investors will have to make an initial investment of £2,000 with further purchases being made in multiples of £100. The bonds will be listed on the London Stock Exchange Order book for Retail Bonds (ORB), meaning investors can buy and sell them on the secondary market.
Eros was founded in 1977 and co-produces, acquires and distributes Indian language films worldwide. It has a library of over 2,300 films and a music library and produces over 70 films a year that are released globally across television, theatres and digital channels.
Jyoti Deshpande, chief executive of Eros, said the launch of the retail bond will help the company to raise money from another source.
‘We are delighted to announce the launch of Eros’ debut retail bond in the UK,’ he said. ‘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.’