In a regulatory filing, the operator has stated that currently from time to time it can borrow up to Rs 90 billion from banks, financial institutions, mutual funds, general public, including non-residents and from other sources. Further, MTNL has stated that as the government is considering refunding the amount paid by the operator for acquiring broadband wireless access (BWA) spectrum in 2010 for Rs 45.34 billion, the same may be arranged in the form of sovereign guaranteed bonds with the government liable for the payment of principle and interest.
According to the operator, since its present long-term borrowings as on December 31, 2013 stood at Rs 52.2 billion with additional issue of Rs 29.8 billion on non convertible bonds in the nature of debentures in 2013, its total borrowings would be to the tune of Rs 82 billion. The operator has stated that as such, the shareholders may concur to the proposal by way of special resolution as a one-time approval for raising the existing borrowing limit from Rs 90 billion to Rs 150 billion.
