India New Issue-MTNL to tap bond market next week for last tranche of FY23-co source

Mahanagar Telephone Nigam

02/02/2023 08:45

By Bhakti Tambe
       MUMBAI, Feb 2 (Reuters) - India's Mahanagar Telephone
Nigam Ltd  MTNL.NS  (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.
    The government gave MTNL a sovereign guarantee in September
to raise 109.10 billion rupees in the current financial year.
 
 ($1 = 81.9425 Indian rupees)
 (Reporting by Bhakti Tambe; Editing by Savio D'Souza)
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