MTNL to raise Rs 3,000 cr through bonds; board meet on Mar 25

MTNL to raise Rs 3,000 cr through bonds; board meet on Mar 25 Mumbai: State-run MTNL on Wednesday said its board will meet on March 25 to consider a proposal on raising Rs 3,000 crore through sovereign guarantee bonds.

It is proposed that the company will raise bonds for 10 years covered by sovereign guarantee through private placement.

"A meeting of the board of directors of the company will be held on March 25, 2013, inter alia, to consider and approve the proposal regarding raising of non-convertible debentures (in the form of bonds) for 10 years worth Rs 3,000 crore covered by sovereign guarantee through private placement," MTNL said in a filing to the BSE.

The amount raised will be used for capital expenditure and in reducing the interest burden, it said.

Shares of the company closed at a new low of Rs 18.85 apiece, down 6.22 per cent on the BSE.

PTI