MTNL to issue 10-year bonds: Traders

India’s Mahanagar Telecom Nigam Ltd (MTNL) is planning to generate at least 5 billion rupees ($60.5 million) by selling government-guaranteed bonds that will mature in 10 years, as per three merchant bankers. The state-owned company has called for coupon and commitment bids from bankers and investors, with a specific submission period on Thursday. Additionally, MTNL has the option to retain an extra 15.42 billion rupees through a greenshoe option, for which it will pay a semi-annual coupon.

The bonds have been assigned AAA (CE) ratings by India Ratings and CARE Ratings, and the subscription for the issue will close on Friday. This will be the final round of bond issuance for MTNL in the current fiscal year, following successful offerings in November of 27.58 billion rupees and 61.10 billion rupees at semi-annual coupons of 7.87% and 8.00%, respectively.