Mahanagar Telephone Nigam Ltd. on Monday said it had invited expression of interest (EoI) from banks for providing long-term loans worth Rs.1,500 crore to repay its debts and meet operational expenses. The seven-year loan with a floating interest rate will be raised in tranches as per the requirement within the discretion of MTNL without any penalty and interest to be calculated for such tranches from the date of the loan raised, it added.

The loan amount is likely to be used to repay the loan MTNL had taken for buying 3G and BWA spectrum last year.

The opening date of sale of the tender document is from July 4 and the closing date and time of sale of the tender document is July 11. MTNL will have full right to make prepayment in advance without any penalty even during the moratorium period. MTNL is already in the process to restructure its loan worth Rs.7,000 crore taken for buying 3G and BWA spectrum last year. The PSU is planning to convert Rs.3,000-crore loan into long-term debt.

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