MTNL to issue 10-year bonds, Traders

India’s Mahanagar Telecom Nigam Ltd (MTNL) plans to raise at least 5 billion rupees ($60.5 million) through the sale of government-guaranteed bonds maturing in 10 years, three merchant bankers said on Tuesday.

The state-run company has invited coupon and commitment bids from bankers and investors from 10:30 a.m. IST to 11:30 a.m. IST on Thursday on the Bombay Stock Exchange’s electronic bidding platform, they said.

The issue also has a greenshoe option to retain an additional 15.42 billion rupees for which MTNL will pay a semi-annual coupon.

The notes are rated AAA (CE) by India Ratings and CARE Ratings and the issue will close for subscription on Friday.

This will be the last trache of bond issuance by MTNL in the current financial year.

It raised 27.58 billion rupees and 61.10 billion rupees in two offerings last November, at semi-annual coupons of 7.87% and 8.00%, respectively. Reuters