BSNL is trying to recover from its bad position. The government is giving the ailing telco the support it requires. Multiple relief packages have been announced for the state-run telco in a span of three years. Now, BSNL is very close to 4G deployment using homegrown technology. This should help the telco change its future towards a positive turn. Ashwini Vaishnaw, union telecom minister, has said that once the 4G of BSNL is deployed, it can be upgraded to 5G in just seven months. But BSNL would require a lot of money to look after its 4G capex, site upgrades, and also investing in new technologies. Vaishnaw said in the Lok Sabha that BSNL had been used as a cash cow by certain ministers. Bharat Sanchar Nigam Limited (BSNL) is going to raise about $1.03 billion next week. The raise would be done through the sale of 10-year government-guaranteed bonds. The development has been reported by Reuters, citing two merchant bankers aware of the matter. This will help BSNL in reviving its business. The state-run telco is likely going to invite coupon and commitment bids on December 21, 2022, and will pay a semi-annual coupon for this issue. The union government of India has provided the notes unconditional and irrevocable guarantee. CRISIL has rated the notes AAA (CE). It is worth noting that Mahanagar Telephone Nigam Limited (MTNL) had raised Rs 27.58 billion through a similarly structured bond at a 7.87% semi-annual coupon. To recall, back in September 2020, BSNL raised Rs 85 billion through 10-year bonds at a semi-annual coupon of 6.79%.
