Mahanagar Telephone Nigam Limited (MTNL) has invited expressions of interest (EoI) from banks to provide a long-term loan of Rs 15 billion. The company plans to use this to repay its debt and meet operational expenses.
In a statement, the operator said, ?The loss-making company has asked for an EoI from public and private banks to provide an offer for a long-term loan (secured) of Rs 15 billion with a floating interest rate for seven years.?
The loan will be raised in tranches as per the company?s requirement, without any penalty and interest, from the date raised.
The sale of tender document starts on July 4 and closes on July 11.
The statement added, ?MTNL has the right to make a pre-payment, without any penalty even during the moratorium period.?
Meanwhile, the company is in the process of restructuring the loan of Rs 70 billion it took to purchase 3G and BWA spectrum. The PSU plans to convert a loan of Rs 30 billion into long-term debt.
