BackMTNL seeks shareholders' nod to raise ₹3,126 crore via bonds
Mahanagar Telephone Nigam Limited (MTNL), state-owned telecom company, Monday said it will seek shareholders' approval to raise ₹3,126 crore through debt bonds against sovereign guarantee
PremiumMahanagar Telephone Nigam Limited, state-owned telecom company, Monday said it will seek shareholders' approval to raise ₹3,126 crore through debt bonds against sovereign guarantee.
The company in a regulatory filing said it “had issued notice dated 31st August 2023 (“AGM Notice") & Addendum of 37th AGM dated 06.09.2023 for convening of the 37th Annual General Meeting (“AGM") of the members of the company scheduled to be held on Friday, September 29, 2023 at 11:30 A.M. through Video Conferencing (VC)/Other Audio Visual Means (OVAM)."
MTNL in the filing said “the consent of shareholders is hereby sought for authorizing the Board for issue of sovereign guarantee bonds of tenure of ten years or more amounting upto ₹3,126 crores by passing a Special Resolution. This resolution shall be valid for one year from the conclusion of this AGM."
“...approval of the members be and is hereby accorded to authorise the Board of Directors of the Company to offer or invite or invite subscriptions for Government Guaranteed, Unsecured, Listed, Redeemable Non-Convertible Debentures in the nature of Bonds (NCDs), in one or more series or tranches, aggregating up to ₹3,126 crore on Private Placement basis," the filing said.
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The Union cabinet in its meeting held in July 2022 approved the debt restructuring plan of MTNL for FY 2022-23 and FY 2023-24. The approval was conveyed by DoT to raise sovereign guarantee bonds, with tenure of 10 years or more, for an amount of ₹6,661 crore for FY 2023-24 with waiver of guarantee fee to repay high cost debt and restructure it with new substantial loan.
The company raised bonds ₹2,480 crores in one tranche of series VIII-A on 20th July, 2023 and ₹1,055 crores in one tranche of series VIII-B on 24th August 2023 through private placement of sovereign guarantee NCDs with tenure of 10 years or more, the regulatory filing read.
The total Debt of MTNL was ₹28,581 crore as of January, and the company is expected to post a net loss of ₹2,808 crore for 2023-24, as per budget projection.
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