BBC Bond BBC Borrows Money

BBC Bond BBC Borrows Money.

The BBC has confirmed it is to offer corporate bonds to raise capital to fund productions.

It may come as a surprise to many given that the BBC is funding by licence payers.

The reality is that the BBC is a global operation and operates commercially overseas with advertising revenues to fund Worldwide services.

The move to borrow money to fund projects makes sense given that the BBC can sell film and series overseas.

Given that commercially other operations can take advantage of venture funding and tax breaks on film deals, it makes sense.

Let’s hope the BBC continues to deliver the same quality of programmes that it has done over the years.

Financially, BBCbond yields are likely to be lower than usual corporatebond yields given the BBC’s unique and secure funding position. We therefore suggest that BBC Bondswill prove very popular with cautious investors looking for yields higher than bank and cash deposit rates.