MUMBAI, Aug 3 (Reuters) - Indian consumer electronics maker Videocon Industries plans to refinance a round $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 $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 273 billion rupees ($4.9 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. ($1=55.7 rupees) (Reporting by Prashant Mehra and Swati Pandey; Editing by Sunil Nair)