Mahanagar Telephone Nigam Limited (MTNL) has announced that it will seek shareholders’ approval to raise Rs 31.26 billion through debt bonds against sovereign guarantee.
According to a regulatory filing by the state-run telco, its 37th annual general meeting (AGM) is scheduled to be held on September 29, 2023. It has sought the consent of shareholders authorising the board for issue of sovereign guarantee bonds of tenure of ten years or more amounting up to Rs 31.26 billion by passing a special resolution. This resolution shall be valid for one year from the conclusion of this AGM.
As per the filing, the approval of the members is accorded to authorise the board of directors of the company to offer or invite subscriptions for government-guaranteed, unsecured, listed, redeemable non-convertible debentures (NCDs) in the nature of bonds, in one or more series or tranches, aggregating up to Rs 31.26 billion on private placement basis.
Further, MTNL informed through the filing that it raised bonds worth Rs 24.80 billion in one tranche of series VIII-A on July 20, 2023 and Rs 10.55 billion in one tranche of series VIII-B on August 24, 2023 through private placement of sovereign guarantee NCDs with tenure of 10 years or more.