State-owned telecom company BSNL has raised more than Rs 8,500 crore by issuing sovereign guarantee bonds. Public funds and public sector banks took part in the issue of the agency. The government has approved the issuance of a sovereign guarantee bond of Rs 8,500 crore for the revival of public sector telecom companies. BSNL Chairman and Managing Director P.K. Purvar also told reporters on Monday that the company also planned to sell assets worth Rs 18,000 crore a year. He hoped that the now-defunct company would return to operating profit in 2021.
Bond gets double subscription
“We opened the bond at 10:30 a.m. and closed at 12 a.m.,” he said. The bond received double the subscription. We have received bids of over Rs 17,170 crore, but depending on the approved size of the bond, we have received only Rs 8,500 crore. BSNL has received 229 bids worth Rs 17,183 crore. These bonds are issued at a coupon rate of 79.7999 per cent per annum for 10 years.
SBI’s contribution is Rs 1,500 crore
BSNL said in a statement that BSNL has successfully completed its first bond issue and raised Rs 8,500 crore by issuing bonds on a personal basis through the BSE bond platform. ICNI Prudential Bonds, National Pension Scheme, State Bank of India and Punjab National Bank participated in BSNL’s bond issue. Purwar said SBI had directly contributed Rs 1,500 crore to the issue.
Application with ZTE, a Chinese telecommunications equipment company
He said the company has applied for 5G testing, but the company will review the partner based on government guidelines. BSNL has applied to ZTE, a Chinese telecommunications equipment company, for 5G testing. The Chinese company has already provided about 44 percent of mobile network equipment to BSNL.