MTNL likely to raise Rs 30 billion through bonds

Mahanagar Telephone Nigam Limited (MTNL) is looking at a proposal to raise Rs 30 billion through sovereign guarantee bonds.

The operator plans to raise bonds for a period of 10 years covered by sovereign guarantee through private placement.

In a filing with the Bombay Stock Exchange, the operator, said, ?A meeting of the board of directors of the company will be held on March 25, 2013, inter alia, to consider and approve the proposal regarding raising of non-convertible debentures (in the form of bonds) for 10 years worth Rs 30 billion covered by sovereign guarantee through private placement.?

MTNL will use the amount raised for capital expenditure and for reducing its interest burden.