State-run Mahanagar Telephone Nigam (MTNL) is reportedly planning to raise Rs 10 billion via 10-year bonds at 9.39 percent semi-annual coupon. The credit rating agencies, Crisil and Care have assigned AAA (SO) rating to bonds. The company had set the base size for the sale at Rs 5 billion.
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.
