BSNL could raise up to Rs 4,200 crore via 10-year bonds on December 21

 

According to a merchant banker connected to the above subject, Bharat Sanchar Nigam Ltd (BSNL) intends to raise up to Rs 4,200 crore through bonds guaranteed by the Indian government and due on December 21.

According to the reports, the issue's entire size is made up of a Rs. 500 crore base issue and a Rs. 3,700 crore greenshoe.

The bonds will be put up for bid between 10:30 and noon on December 21 and paid in on December 23.

The company said in the term sheet for the offering that "the funds will be used to settle the principal amount and interest on debt."

A financial product known as a "government-guaranteed bond" provides a secondary assurance that, in the event that the issuer is unable to make interest and principal payments, the government will do so.

Investors who are qualified to participate in the offer using the BSE's electronic book mechanism, as well as any non-QIB investors, including arrangers, are eligible to invest in this issue.

According to the fifth proviso of Rule 14 (1) of the Companies (Prospectus and Allotment of Securities) Rules 2014 as amended by MCA vide notification dated May 5, 2022, no body corporate organised in or a national of a country that borders India may offer or be invited to purchase NCDs under this issue.

The bonds have received a "AAA" rating from CRISIL and India Ratings & Research Pvt Ltd, with a "Stable" outlook.

According to statistics from Prime Database, the last time BSNL used the bond market was in September 2020, when it raised Rs 8,500 crore.