State-owned telecommunications service provider Mahanagar Telephone Nigam Limited (MTNL) on 21st December 2020 issued sovereign bonds of the face value of Rs 10 lakh each aggregating up to Rs 2,138.6 crore. The company issued 6.85% 21,386 Nos. unsecured, rated, listed, Government of India guaranteed, redeemable, Non-Convertible taxable bonds in the nature of Debentures series.
Centre had earlier given MTNL the nod to raise upto Rs 6,500 crore for a tenure of 10 years through sovereign guarantee bonds as part of its revival package. MTNL has already raised Rs 4,361.4 crore under the package on October 12. The newly issued sovereign bonds are also issued for a period of 10 years that will mature on 20th December 2030.
MTNL had earlier planned to seek the nod of its stakeholders for the approval of the issue of Non-Convertible Debentures on a private placement basis. The matter was item number 7 on the notice of the 34th AGM of MTNL that was to be held on December 31.
MTNL earlier today in an addendum to the notice of the 34th AGM of MTNL withdrew item number 7 pertaining to approval for the issue of Non-Convertible Debentures on a private placement basis.