MTNL opens tender for INR15 billion loan
State-owned Indian telco Mahanagar Telephone Nigam Limited (MTNL) has reportedly invited bids from both state-run and private sector banks with a view to raising INR15 billion (USD333.64 million) via a seven-year loan with variable interest rates, according to the Wall Street Journal. MTNL has said that in the initial three years of the loan's lifespan it would pay on an interest-only basis, with repayments made each month, following which, from the fourth year on its would make quarterly repayments on the entire loan. The move comes after the operator in May 2011 said it would look to reorganise the INR110.98 billion debt taken on to pay for 3G and broadband wireless access (BWA) spectrum; as noted in TeleGeography's GlobalComms Database, having been allocated 3G and BWA spectrum prior to the sale in mid-2010 the telco had been advised it would need to match the winning bids of private players for the frequencies it received. The sale of the tender document for interested parties will close on 11 July, the telco has revealed.
India, Mahanagar Telephone Nigam Limited (MTNL), Corporate/Financial