New Delhi: State-run Bharat Sanchar Nigam Limited (BSNL) is planning to raise Rs 15,000 crores by issuing sovereign bonds in December, Chairman and Managing Director (CMD) PK Purwar said on Wednesday.
“We have written to DoT already asking for approval for the Rs 15,000-crore sovereign bonds. DoT is in the process of sending it to finance ministry for approval. We can raise all Rs 15,000 crore in one tranche.
We expect to get the approval soon for the bonds to raise the funds,” Purwar was quoted as saying by a wire agency.
BSNL sovereign bonds
BSNL is planning to issue sovereign bonds as part of a revival plan approved by the BJP government in October. The Union Cabinet gave its nod to a revival plan for BSNL and MTNL that included the merger of the two companies last month. The plan involves raising sovereign bonds, monetising assets and voluntary retirement scheme (VRS) for employees.
What are sovereign bonds?
Sovereign bonds are bonds issued by a national government, generally with a promise to pay periodic interest payments called coupon payments and to repay the face value on maturity.
The fund will meet the PSU’s immediate capital requirement
The funds raised through these bonds will meet the immediate capital requirement of the public sector undertaking (PSU). BSNL is set to start 4G services from 2020. However, it will have to take network upgrade and float a 4G tender before it sets out for the task.
The news comes just days after Purwar said that the number of employees who have opted for the voluntary retirement scheme (VRS) since it opened on November 5 has crossed 40,000.
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