The state-run telecom operator, Mahanagar Telephone Nigam Limited (MTNL) is planning to raise around Rs 23 billion by selling bonds with a maturity of ten years. The coupon rate of these bonds is expected to be fixed at an annual 8.50-8.51 per cent, around 10-15 basis points higher than the rate of government bonds.
This would be the second tranche of funding being raised by the company. Earlier, it raised Rs 15 million by selling the same bonds at an annual 8.41 per cent rate and a half-yearly 8.21 per cent rate on November 18, 2014. MTNL was allowed to raise around Rs 3.76 billion in 2014 however was unable to collect the full amount in the first issue, and thus has planned another round of funding.
MTNL securities are rated as triple-A, and the structured obligation of these bonds has reportedly attracted interest from overseas investors.
