<p>Corporate bond market participants are braced for a heavy supply of government-guaranteed bonds over the next few weeks, as state-run telecom giants MTNL and BSNL aim to raise Rs 19,350 crore, three merchant bankers said.</p>.<p>Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd intend to raise an aggregate of Rs 19,350 crore through government-guaranteed bonds, the bankers said.</p>.<p>MTNL plans to raise Rs 10,910 crore in November. It is set to seek bids next week and will meet bankers and investors on Tuesday, according to the bankers.</p>.<p>The telecom company is looking to issue bonds maturing in 10 years and will pay a semi-annual coupon, similar to how central government bonds are priced.</p>.<p>MTNL and BSNL both received the sovereign guarantee to raise Rs 10,910 crore and Rs 8,446 crore, respectively, in the current financial year, the government said in September.</p>.<p>Despite the guarantee, the spread over sovereign bonds may widen this time.</p>.<p>"The companies may have to pay a higher yield this time as the market is not that favourable," said one of the bankers, adding that the companies are being advised to spread out the borrowing.</p>.<p>MTNL had said in August that it plans to issue sovereign guarantee bonds worth Rs 17,577 croreand would use the proceeds to service older bonds and bank loans.</p>.<p>The last time MTNL tapped the bond market was in October-December 2020, when it raised an aggregate of around Rs 6,500 crore through two 10-year government-guaranteed bond issuances at a semi-annual coupon of 6.85% and 7.05%.</p>.<p>Meanwhile, BSNL may also launch a 10-year bond issuance at the end of November or in early December, bankers said.</p>.<p>The company had raised Rs 8,500 crore through 10-year bonds at a semi-annual coupon of 6.79% in September 2020.</p>
<p>Corporate bond market participants are braced for a heavy supply of government-guaranteed bonds over the next few weeks, as state-run telecom giants MTNL and BSNL aim to raise Rs 19,350 crore, three merchant bankers said.</p>.<p>Mahanagar Telephone Nigam Ltd and Bharat Sanchar Nigam Ltd intend to raise an aggregate of Rs 19,350 crore through government-guaranteed bonds, the bankers said.</p>.<p>MTNL plans to raise Rs 10,910 crore in November. It is set to seek bids next week and will meet bankers and investors on Tuesday, according to the bankers.</p>.<p>The telecom company is looking to issue bonds maturing in 10 years and will pay a semi-annual coupon, similar to how central government bonds are priced.</p>.<p>MTNL and BSNL both received the sovereign guarantee to raise Rs 10,910 crore and Rs 8,446 crore, respectively, in the current financial year, the government said in September.</p>.<p>Despite the guarantee, the spread over sovereign bonds may widen this time.</p>.<p>"The companies may have to pay a higher yield this time as the market is not that favourable," said one of the bankers, adding that the companies are being advised to spread out the borrowing.</p>.<p>MTNL had said in August that it plans to issue sovereign guarantee bonds worth Rs 17,577 croreand would use the proceeds to service older bonds and bank loans.</p>.<p>The last time MTNL tapped the bond market was in October-December 2020, when it raised an aggregate of around Rs 6,500 crore through two 10-year government-guaranteed bond issuances at a semi-annual coupon of 6.85% and 7.05%.</p>.<p>Meanwhile, BSNL may also launch a 10-year bond issuance at the end of November or in early December, bankers said.</p>.<p>The company had raised Rs 8,500 crore through 10-year bonds at a semi-annual coupon of 6.79% in September 2020.</p>