Mahanagar Telephone Nigam Limited (MTNL) has said that it has raised Rs 5 billion from various banks, which it will use to repay debts and meet operational expenses.
Prior to this, MTNL had invited expression of interest (EoI) from various banks for providing long-term loans worth Rs 15 billion, with a floating interest rate for seven years.
The company is already in the process of restructuring the Rs 70 billion loan it took to purchase 3G and BWA spectrum in 2010. MTNL plans to convert the Rs 30 billion loan into a long-term debt.
The company had already restructured Rs 35 billion of debt, by repaying Rs 5 billion and tying up with two state-run banks for the remaining Rs 30 billion.
