Indian corporate bond market participants are braced for a heavy supply of government-guaranteed bonds over the next few weeks, as state-run telecom giants MTNL and BSNL aim to raise $2.34 billion, three merchant bankers said.
Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd intend to raise an aggregate of 193.56 billion Indian rupees through government-guaranteed bonds, the bankers said.
MTNL plans to raise 109.10 billion rupees in November. It is set to seek bids next week and will meet bankers and investors on Tuesday, according to the bankers.
The telecom company is looking to issue bonds maturing in 10 years and will pay a semi-annual coupon, similar to how central government bonds are priced.