IPL Media Bid Winners Negotiate Bank Guarantees

HDFC Bank and (+), the country’s three most respected financiers, are among the lenders likely helping Reliance-owned Viacom18 provide bank guarantees for newly won Indian Premier League (IPL) digital media rights. as well as Deutsch The bank is among foreign lenders likely offering the same Disney-Star funds that won the broadcast rights, banking industry sources told ET.

controlled by Walt Disney Star and Viacom18 won Packages A and B, respectively, in the just-concluded round of rights auctions that saw the cricket league as the world’s second richest sporting event.

Disney will spend £23,575 crore and Viacom18 £20,500 crore to broadcast games on TV and digital media respectively in India until 2027.

To be sure, Viacom18 has won tenders in other categories as well, with total scheduled payments in excess of £23,750 crore.

“Both companies are required to provide bank guarantees (BG) to meet their obligations to the cricket board and are in preliminary discussions with more than half a dozen creditors to complete their respective transactions,” a person with knowledge of the negotiations said.

Disney-Star and Viacom18 jointly arrange non-financial guarantees worth approximately £9,600 crore cashable BCCI if there are questions about payments over the next five years.

Disney-Star is in talks with at least four banks – BNP Paribas, Deutsche Bank, HSBC and Standard Chartered Bank – for guarantees that will be renewed every year, people with knowledge of the talks told ET. This will cover about 80% of the amount needed for the first year of coverage, estimated at £4,715 crore.

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“For the remaining 20%, the company could bring in US lenders like Bank of America or JP Morgan,” a second person with knowledge of the talks said.

Meanwhile, Viacom18 is in the process of completing a deal with SBI, ICICI Bank and

. “These negotiations are nearing completion,” said a third person with knowledge of the process.

Viacom18 and some banks did not respond to ET inquiries sent by mail. Disney-Star, BNP, Deutsche, HSBC and Standard Chartered declined to comment.