State-run, MTNL is likely to raise Rs 3,000 crore through sovereign guarantee bonds. Its board will consider the proposal to raise bonds for 10 years covered by sovereign guarantee through private placement, in meeting held on March 25th. The entity is planning to use the fund for capital expenditure and in reducing the interest burden.
MTNL was set up by the Government of India to upgrade the quality of telecom services, expand the telecom network, and introduce new services and to raise revenue for telecom development needs of India's key metros -- Delhi and Mumbai.
