BSNL to issue 10-year bonds next week

India’s Bharat Sanchar Nigam Ltd plans to raise around 85 billion rupees ($1.03 billion) through sale of 10-year government guaranteed bonds next week, two merchant bankers said on Thursday.

The telecom company is likely to invite coupon and commitment bids for the same on Dec. 21 and will pay a semi-annual coupon for this issue, they said.

The notes are rated AAA (CE) by CRISIL, and carry an unconditional and irrevocable guarantee from the union government.

In November, another state-run telecom operator Mahanagar Telephone Nigam had raised 27.58 billion rupees through similar-structured bond at 7.87% semi-annual coupon

BSNL has previously raised 85 billion rupees through 10-year bonds at a semi-annual coupon of 6.79% in September 2020. Reuters