Indian state-run telcos MTNL, BSNL line up $2.34 bln debt sales - Reuters

MUMBAI, Nov 1 (Reuters) - Indian firm enslaved marketplace participants are braced for a dense proviso of government-guaranteed bonds implicit the adjacent fewer weeks, arsenic state-run telecom giants MTNL and BSNL purpose to rise $2.34 billion, 3 merchant bankers said.

Mahanagar Telephone Nigam Ltd (MTNL.NS) and Bharat Sanchar Nigam Ltd (BSNL.NS) mean to rise an aggregate of 193.56 cardinal Indian rupees done government-guaranteed bonds, the bankers said.

MTNL plans to rise 109.10 cardinal rupees successful November. It is acceptable to question bids adjacent week and volition conscionable bankers and investors connected Tuesday, according to the bankers.

The telecom institution is looking to contented bonds maturing successful 10 years and volition wage a semi-annual coupon, akin to however cardinal authorities bonds are priced.

MTNL and BSNL some received the sovereign warrant to rise 109.10 cardinal rupees and 84.46 cardinal rupees, respectively, successful the existent fiscal year, the authorities said successful September.

Despite the guarantee, the dispersed implicit sovereign bonds whitethorn widen this time.

"The companies whitethorn person to wage a higher output this clip arsenic the marketplace is not that favourable," said 1 of the bankers, adding that the companies are being advised to dispersed retired the borrowing.

MTNL had said successful August that it plans to contented sovereign warrant bonds worthy 175.770 cardinal rupees and would usage the proceeds to work older bonds and slope loans.

The past clip MTNL tapped the enslaved marketplace was successful October-December 2020, erstwhile it raised an aggregate of astir 65 cardinal rupees done 2 10-year government-guaranteed enslaved issuances astatine a semi-annual coupon of 6.85% and 7.05%.

Meanwhile, BSNL whitethorn besides motorboat a 10-year enslaved issuance astatine the extremity of November oregon successful aboriginal December, bankers said.

The institution had raised 85 cardinal rupees done 10-year bonds astatine a semi-annual coupon of 6.79% successful September 2020. ($1 = 82.6850 Indian rupees)

Reporting by Bhakti Tambe and Dharamraj Dhutia; Editing by Savio D'Souza

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