According to industry sources, Bharat Sanchar Nigam Limited (BSNL) and Mahanagar Telephone Nigam Limited (MTNL) intend to raise an aggregate amount of Rs 193.56 billion through government-guaranteed bonds.
Of this, MTNL plans to raise Rs 109.10 billion in November 2022. To this end, the operator is expected to seek bids and meet bankers and investors soon. The operator plans to issue bonds maturing in 10 years along with plans to pay a semi-annual coupon, similar to central government bonds.
Besides, BSNL may also launch a 10-year bond issuance at the end of November 2022 or in early December 2022. Earlier, in September 2020, the company had raised 85 billion rupees through 10-year bonds at a semi-annual coupon of 6.79 per cent.
As per government reports, MTNL and BSNL had received sovereign guarantee to raise Rs 109.10 billion rupees and Rs 84.46 billion, respectively, in the current financial year. However, despite the guarantee, the spread over sovereign bonds may widen this time.
