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MTNL gets board approval for raising Rs 3,000 cr via bonds

MTNL gets board approval for raising Rs 3,000 cr via bonds

Mahanagar Telephone Nigam Ltd (MTNL) has received its board's nod for raising Rs 3,000 crore through sovereign guarantee bonds.

Mahanagar Telephone Nigam Ltd (MTNL) has received its board's nod for raising Rs 3,000 crore through sovereign guarantee bonds.

MTNL Chairman and Managing Director AK Garg said the amount raised will be used for capital expenditure and in reducing interest burden.

"The Board of Directors of the company at its meeting held on March 25, 2013, has approved the proposal for raising non-convertible debentures (in the form of bonds) worth Rs 3,000 crore for a period of 10 years guaranteed by the Government of India," MTNL said in a filing to the Bombay Stock Exchange (BSE).

The MTNL board also approved the appointment of Karvy Computer Share Private Ltd as the registrar and share transfer agent (RTA) of the company, SBI CAP Trustee Ltd as trustee and Care and Crisil as credit rating agencies, the filing added.

Shares of MTNL closed at Rs 18 apiece, down 0.28 per cent from their previous close on BSE.

With inputs from PTI