India New Issue-India's MTNL to issue 10-year bonds - traders

Mahanagar Telephone Nigam

10/11/2022 07:29

MUMBAI, Nov 10 (Reuters) - India's Mahanagar Telephone
Nigam  MTNL.NS  plans to raise at least 5 billion Indian rupees
($61.17 million) through sale of government-guaranteed bonds
maturing in 10 years, three merchant bankers said on Thursday.
    The state-run company has invited coupon and commitment bids
from bankers and investors from 1030 IST to 1200 IST on Nov. 14,
they said.
    The notes are rated AAA (CE) by India Ratings and CARE
Ratings and the issue will close for subscription on Tuesday. 
    The issue will have a greenshoe option to retain an
additional 65 billion rupees for which the company will pay a
semi-annual coupon.  
    This would be the first issuance by the company in over two
years. In October-December 2020, MTNL had raised an aggregate of
around 65 billion rupees through two 10-year
government-guaranteed bond issuances at a semi-annual coupon of
6.85% and 7.05%.
    MTNL plans to raise an aggregate 109.10 billion rupees
through such bonds in this financial year.  urn:newsml:reuters.com:*:nL4N31X1R0
($1 = 81.7450 Indian rupees)
 (Reporting by Dharamraj Dhutia and Bhakti Tambe; Editing by
Dhanya Ann Thoppil)
 ((Dharamraj.dhutia@tr.com))