State-run Bharat Sanchar Nigam Limited (BSNL) announced it raised Rs 8,500 crore through sovereign guarantee bonds, with a maturity of 10 years. The proceeds will be used for debt refinancing and meeting the CapEx requirements.
The government-owned telecom firm received total 229 bids valued at Rs 17,183 crore. The bonds have been issued at a coupon rate of 6.79% per annum for a 10-year period.
“It’s a big occasion for BSNL and despite COVID-induced lockdown and slow economic activity, we were able to successfully raise bonds,” said BSNL Chairman Pravin Kumar Purwar.
“BSNL made its first-ever bond issue successfully and raised Rs 8,500 crore by issuing bonds on private placement basis using BSE BOND platform,” the Bombay Stock Exchange (BSE) said in a statement.
Purwar said that the state-owned telecommunications company is in the process to revisit its 5G trial strategy following the standoff between India and China.
In 2017, BSNL entered into a partnership with Chinese giant ZTE, and the two companies had signed an MoU to work together on 5G wireless technology.
The telecom service provider has also identified as many as 14 land parcels under the assets monetization scheme and is likely to garner Rs 18,000 crore within a year.