BSNL set to re-enter corporate bond market after year-long hiatus

BSNL bonds return: Bharat Sanchar Nigam Ltd (BSNL) is gearing up to re-enter the corporate bond market after a hiatus of over a year. According to reports from three merchant bankers on Monday, the state-run telecom company is preparing to issue 10-year government-guaranteed bonds in March.

BSNL aims to raise around Rs 43 billion ($518.98 million) through this bond issuance. The company is expected to invite bids from bankers and investors in the coming days to facilitate the process.

The bonds are said to be rated AAA (CE) by Crisil and will carry an unconditional and irrevocable guarantee from the union government, enhancing their attractiveness to potential investors.

BSNL's previous foray into the bond market in December 2022 saw the company raise Rs 41.85 billion through similar 10-year government-guaranteed bonds. These bonds carried a semi-annual coupon of 7.72 per cent and garnered a favourable market response.

As of March 4th, BSNL has announced its intention to proceed with the bond issuance, although specific details regarding tenure, coupon rate, and bidding date are yet to be finalised.

The move signifies BSNL's financial decision-making amidst evolving market conditions. With government backing and a solid track record, the company aims to leverage the corporate bond market to boost its financial position.

(With Reuters Inputs)