Zee Media approves 10-Year, 5% FCCB issue worth USD 465.9 Million

Zee Media Corporation Limited announced today that its Board of Directors has approved a major fundraising initiative through the issuance of Foreign Currency Convertible Bonds (FCCBs) worth up to USD 465.9 million (Rs 399.78 crore). The bonds will be issued on a private placement basis to UNICO Global Opportunities Fund Ltd. and Sun India Opportunities Investing Fund.

This strategic move aims to bolster Zee Media's financial flexibility and is aligned with the External Commercial Borrowing (ECB) guidelines issued by the Reserve Bank of India.

The decision was made during a board meeting held earlier today and disclosed to the National Stock Exchange (NSE) and BSE Limited. The bonds will carry a 5% annual coupon rate, remain unsecured and unlisted, and have a 10-year maturity. They will be issued on a private placement basis to two international investors — UNICO Global Opportunities Fund Limited and Sun India Opportunities Investing Fund (a VCC sub-fund).

The FCCBs will be issued in five series, and the funds will be drawn in tranches. The company has fixed the conversion price at ₹13.50 per equity share (including ₹12.50 as equity premium), based on the pricing formula under the 1993 FCCB Scheme. The "floor price" for the issuance has been set at ₹13.04 per equity share, with the relevant date for pricing determined as April 8, 2025.

Should the bonds be converted, Zee Media could potentially issue up to 2,961,353,58 new equity shares of ₹1 each. The FCCBs will not be listed on any stock exchange, domestic or international. The company has not reported any default history on coupon payments for prior FCCB issuances.