BSNL to raise ₹15000 crore through sovereign bonds next month1 min read . Updated: 13 Nov 2019, 06:54 PM IST
- The cabinet decision last month had paved the way for MTNL to be a subsidiary of BSNL and the firms can raise ₹15,000 crore on sovereign bonds
- The package includes raising of ₹15,000 crore sovereign bonds to meet the immediate capital requirement
"We have written to DoT already asking for approval for the ₹15,000 crore sovereign bonds. DoT is in the process of sending it to finance ministry for approval. We can raise all ₹15,000 crore in one tranche. We expect to get the approval soon for the bonds to raise the funds", P K Purwar, CMD of BSNL told IANS.
Government bond or sovereign bond is a bond issued by a national government, generally with a promise to pay periodic interest payments called coupon payments and to repay the face value on maturity.
The package includes raising of ₹15,000 crore sovereign bonds to meet the immediate capital requirement. BSNL is slated to start 4G services next year and before that it will have to take network upgrade, float a new 4G tender as well.
On November 1, state-run MTNL said it has received communications from the Government on the cabinet decision. As per this decision, MTNL will be a subsidiary of BSNL by transferring the government's shareholding to it following the Union Cabinet's in-principle approval to their merger. Government holds 56.25% in MTNL.
The cabinet decision last month had paved the way for MTNL to be a subsidiary of BSNL and the firms can raise ₹15,000 crore on sovereign bonds.