India New Issue-MTNL to raise up to 25 bln rupees via bonds this week - official

Mahanagar Telephone Nigam

17/07/2023 07:25

(NOTE TO SUBSCRIBERS: Reuters is considering discontinuing the following 'India New Issue'
report. If you have feedback or questions, please contact India Financial News Editor Ira Dugal
Ira.Dugal@thomsonreuters.com prior to July 31)
       MUMBAI, July 17 (Reuters) - India's Mahanagar Telephone Nigam Ltd  MTNL.NS  (MTNL) plans
to raise up to 25 billion rupees ($304.31 million) through government-guaranteed bonds and will
likely invite bids this week, a senior company official said.
    Three merchant bankers, who are arrangers to this proposed bond issue, also confirmed the
plans.
    "We are looking to retire some high-cost debt so decided to tap the bond market," the
official told on a condition of anonymity as he is not authorised to talk to media. 
    MTNL did not immediately respond to Reuters' email seeking comment.
    MTNL has received the sovereign guarantee to raise 66.1 billion rupees in the current
financial year, it informed the exchanges on Friday. 

             Issuer                                                              
                       Tenure        Coupon (in %)  Issue size (in  Bidding      Rating
                                                    bln rupees)*    date         
                                                                                 
 MTNL                  10-year       To be decided  5+20            To be        AAA (CE)
                                                                    decided      (India
                                                                                 Ratings)
 Tata Capital                  5-yr           7.97           3+3.1  July 18      AAA (Crisil)
 Financial Services                                                              
 Nomura Capital                3-yr  To be decided             1+1  July 20      AAA (India
 (India)                                                                         Ratings)
 
*Size includes base plus greenshoe for some issuances



($1 = 82.0490 Indian rupees)

 (Reporting by Bhakti Tambe; Editing by Nivedita Bhattacharjee)
 ((Bhakti.Tambe@thomsonreuters.com))