Mahanagar Telephone Nigam Limited (MTNL) has raised Rs 15 million by selling 10-year bonds at an annual 8.41 per cent rate and a half-yearly 8.21 per cent rate. The bond issue was oversubscribed by 1.5 times of its core issue size but it remained short of the target set by MTNL. The company has kept the issuance open for subscriptions on November 18, 2014 to raise up to Rs 37 million.
Although the repayments will be made at the end of maturity, MTNL is also offering a call option at the end of nine years. In this option, MTNL will repay the money after the stipulated period. The bonds are rated as triple-A, indicating outside support by the Government of India. Due to this rating, the bond issue has reportedly attracted interest from overseas investors.
