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MTNL invites EoI to raise Rs 1,500 cr loan

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CIOL Bureau
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NEW DELHI, INDIA: State-run telecom player Mahanagar Telephone Nigam Ltd (MTNL) has invited expression of interest (EoI) from public sector as well as privater sector banks to provide long-term loans of Rs 1,500 crore to the loss-making company.

The seven-year loan, with floating interest rates, is to repay its debts and meet operational expenses, the company said on Saturday.

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“MTNL invites offer from the Public Sectors/Private Banks for providing an offer for long terms Loan (Secured) of Rs 1,500 crore with a floating interest rate for a tenure of seven years,” read the statement from MTNL.

According to the bid document, “The loan will be raised in tranches as per the requirement within the discretion of the MTNL without any penalty and interest to be calculated for such tranches from the date of raised”.

MTNL also said the loans would have a moratorium period of three years on principal repayment with interest payment on monthly basis followed by repayment of loan quarterly in the ballooning pattern.

The tender, which opens on July 4 will be closed on July 11, 2011.

“MTNL has full right to make prepayment in advance without any penalty even during the moratorium period,” said MTNL.

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