State-owned telecoms MTNL and BSNL sell $2.34 billion in bonds.

HomeBusinessState-owned telecoms MTNL and BSNL sell $2.34 billion in bonds.

Published on

November 2, 2022

Three merchant bankers expect MTNL and BSNL to issue $2.34 billion in government-guaranteed bonds in the coming weeks.
Bankers said Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd want to raise 193.56 billion Indian rupees through government-guaranteed bonds.
MTNL wants 109.10 billion rupees in November. Bankers said it will seek offers next week and meet investors and bankers on Tuesday.
Telecom companies want to issue 10-year bonds with semi-annual coupons, like central government bonds.
In September, the government stated MTNL and BSNL secured sovereign guarantees to fund 109.10 billion and 84.46 billion rupees, respectively, in the current financial year.
Despite the guarantee, sovereign bond spreads may expand this time.