MTNL to tap bond market next week for last tranche of FY23

India’s Mahanagar Telephone Nigam Ltd (MTNL) is likely to tap the corporate bond market next week with its last tranche of government-guaranteed bonds for this financial year, a senior company official told Reuters on Thursday.

The 20.42 billion rupees ($249.2 million)-bond issue, MTNL’s first after a gap of two months is expected after the Reserve Bank of India’s (RBI) policy meeting next week, one of the bankers arranging the issue said.

“Now that the (federal) budget is done, MTNL will tap the market after RBI policy for their remaining fundraising of this year. This will be the last bond issue by the company for FY23,” the banker said.

The merchant banker, one of two who confirmed the issue and other details, and the company official spoke on a condition of anonymity as they are not allowed to talk to the media.

The notes will mature in 10 years and are rated AAA (CE) by India Ratings and CARE Ratings.

The state-run telecom company 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