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