InvestorQ : What is the purpose of BSNL raising over a billion dollars via sovereign bonds?
Arya Nanda made post

What is the purpose of BSNL raising over a billion dollars via sovereign bonds?

Answer
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Anjana Aiyar answered.
4 weeks ago


Bharat Sanchar Nigam Limited or BSNL has managed to collect more than Rs.8500 crore through the issue of sovereign guarantee bonds. This is part of the government revival package for BSNL, which provides telecom services to all locations other than Delhi and Mumbai.

BSNL disclosed that it had received twice the value bids of over Rs.17,170 crore against the issue size of Rs.8500 crore but only the approved bond size was accepted. It got 229 bids and the interest was clearly due to the existence of sovereign guarantee.

BSNL issued bonds at a coupon of 6.79% for a tenure of 10 years, which is an attractive coupon to raise funds in this market. BSNL saw participation from National Pension Scheme or NPS, Rural Postal Life Insurance, State Bank of India and PNB among others.