Mahanagar Telephone Nigam Limited (MTNL) has sought the board’s approval for issuing sovereign guarantee bonds worth Rs 66.61 billion, as per the cabinet approval with regard to its revival.
Previously in July 2022, the union cabinet had approved a four-year relief package worth Rs 1.64 trillion for the revival of Bharat Sanchar Nigam Limited (BSNL), which also included MTNL. The government will seek to provide a sovereign guarantee to these public sector undertakings (PSUs) for raising long-term loans. The bonds issued by the telecom company will likely mature in 10 years and will pay a semi-annual coupon. This is a four-year period revival programme with the aim of implementing most of it in the first two.
