Bharat Sanchar Nigam Limited (BSNL) has raised more than Rs 8,500 crore through sovereign guarantee bonds, according to a top official of the company. The government has approved Rs 8,500 crore sovereign guarantee bonds for the revival of the telecom PSU.
"We opened the bond at 10.30 am and closed at 12 pm. The bond was subscribed over two times. We were able to get bids of over Rs 17,170 crore but we accepted only Rs 8,500 crore as per the approved bond size," BSNL chairman and managing director PK Purwar told reporters. BSNL received total 229 bids valued at Rs 17,183 crore.
The bonds have been issued at coupon rate of 6.79 per cent per annum for 10 year period.
BSNL saw participation of National Pension Scheme, Rural Postal Life Insurance, State Bank of India, Punjab National Bank etc. BSNL saw participation of National Pension Scheme, Rural Postal Life Insurance, State Bank of India, Punjab National Bank etc.
The company would use the proceeds to repay debt and fund expansion as it aims to regain market share in a sector that’s consolidated and now has only three private operators. A recent Economic Times report had said that the government-owned telecom firm would raise the sum through its first ever bond sale.
"It's a big occasion for BSNL and despite Covid-induced lockdown and slow economic activity, we were able to successfully raise bonds," said BSNL Chairman Pravin Kumar Purwar.
"BSNL made its first-ever bond issue successfully and raised Rs 8,500 crore by issuing bonds on private placement basis using BSE BOND platform," the Bombay Stock Exchange (BSE) in a statement said.
"We have not only increased subscribers but our market share has been increased to 11.38 percent today, and we are hoping to become Earnings before interest, taxes, depreciation, and amortization (EBITDA) positive in 2021," he said. (PTI, ET)