New Delhi: State-run telecom company Mahanagar Telephone Nigam Limited (MTNL) has raised Rs.1,005 crore through bonds backed by sovereign guarantee from institutional investors.
“We have raised around Rs.1,005
crore through sovereign guarantee bonds from institutional investors.
The funds raised will be accounted in financial year 2012-13,” MTNL’s
chairman and managing director A.K. Garg told PTI.
The company’s board of directors at its meeting held on
25 March had approved the proposal for raising non-convertible
debentures (in the form of bonds) worth Rs.3,000 crore for a period of 10 years guaranteed by the government.
MTNL expects to raise the balance funds in early April,
Garg added. The PSU telecom firm will use funds to repay high interest
loans and capital expenditure. The company reported finance costs worth Rs.301.74 crore on stand-alone basis in third quarter ended on 31 December, 2012.
The total finance costs (stand-alone) incurred by company in FY 2011-12 stood at Rs.949.15
crore. MTNL had appointed Karvy Computer Share Private Ltd as the
registrar and share transfer agent (RTA), SBI CAP Trustee Ltd as
trustee, Care and Crisil as credit rating agencies to oversee
transactions for the bonds.
