Videocon to refinance, raise debt in $6bn deal: Sources

Consumer electronics maker Videocon Industries  plans to refinance a round USD 3 billion of the diversified group's debt as part of a restructuring exercise that will cut interest costs and standardise loan terms, five sources with direct knowledge of the deal said.

Videocon, which has recently made a series of oil and gas discoveries in blocks it had earlier invested in, is also raising another USD 3 billion in fresh long-term debt, part of which will be used to fund its future capex requirements for the oil and gas business, the sources told Reuters on Friday.

Videocon Industries held long-term debt of nearly Rs 273 billion on its books as at end-December 2011.

As many as 27 banks are involved in the funding arrangement, including the country's top lender State Bank of India , Punjab National Bank and IDBI Bank .

The first tranche of the deal will be signed next week, while the balance will be finalised later this month.