BSNL, MTNL line up ₹19,000 crore value of bond gross sales


MUMBAI :  Indian company bond marketplace members are braced for a heavy provide of government-guaranteed bonds over the following couple of weeks, as state-run telecom giants MTNL and BSNL goal to boost $2.34 billion, 3 service provider bankers stated.

Mahanagar Phone Nigam Ltd and Bharat Sanchar Nigam Ltd intend to boost an combination of 193.56 billion Indian rupees via government-guaranteed bonds, the bankers stated.

MTNL plans to boost 109.10 billion rupees in November. It’s set to hunt bids subsequent week and can meet bankers and traders on Tuesday, in line with the bankers.

The telecom corporate is having a look to factor bonds maturing in 10 years and can pay a semi-annual coupon, very similar to how central authorities bonds are priced.

MTNL and BSNL each won the sovereign ensure to boost 109.10 billion rupees and 84.46 billion rupees, respectively, within the present monetary 12 months, the federal government stated in September.

In spite of the ensure, the unfold over sovereign bonds might widen this time.

“The corporations could have to pay the next yield this time because the marketplace isn’t that beneficial,” stated probably the most bankers, including that the firms are being suggested to unfold out the borrowing.

MTNL had stated in August that it plans to factor sovereign ensure bonds value 175.770 billion rupees and would use the proceeds to provider older bonds and financial institution loans.

The closing time MTNL tapped the bond marketplace was once in October-December 2020, when it raised an combination of round 65 billion rupees via two 10-year government-guaranteed bond issuances at a semi-annual coupon of 6.85% and seven.05%.

In the meantime, BSNL might also release a 10-year bond issuance on the finish of November or in early December, bankers stated.

The corporate had raised 85 billion rupees via 10-year bonds at a semi-annual coupon of 6.79% in September 2020. 

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