"The Board of Directors of the company at its meeting held on March 25, 2013, has approved the proposal for raising non-convertible debentures (in the form of bonds) worth Rs 3,000 crore for a period of 10 years guaranteed by the Government of India," MTNL said in a BSE filing.
The MTNL board also approved the appointment of Karvy Computer Share Private Ltd as the registrar and share transfer agent (RTA) of the company, SBI CAP Trustee Ltd as trustee and Care and Crisil as credit rating agencies, the filing added.
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MTNL Chairman and Managing Director AK Garg has said the amount raised will be used for capital expenditure and in reducing interest burden.
Shares of the company closed at Rs 18 apiece, down 0.28 per cent from their previous close on the BSE.
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