MTNL Fails to Fund Interest for Bond Series VI, Citing Insufficient Funds
Mahanagar Telephone Nigam Limited (MTNL) has reported a funding shortfall regarding the semi-annual interest due on its 6.85% MTNL Bond Series VI (INE153A08097).The payment of this semi-annual interest was due on June 21, 2026. As per the Structured Payment Mechanism established by the Tri-Partite Agreement (TPA), which involves MTNL, the Department of Telecommunications (DoT), the Ministry of Communications, Government of India, and SBICAP Trustee Company Limited, MTNL was required to fund the interest into an ESCROW Account maintained in Bank of India ten days prior to the due date.
The bonds issued by MTNL are structured as Sovereign Guaranteed Bonds under the Government of India. The Tripartite Agreement (TPA) specifies that if MTNL defaults on the payment of either Principal or Interest, the Debenture Trustee will invoke the Sovereign Guarantee. Under this provision, the Government of India is obligated to make the required payments to MTNL.
Despite these provisions within the TPA structure, it has been noted that due to insufficient funds, MTNL was unable to fund the ESCROW Account in Bank of India with the adequate amount.
MTNL Stock Price Movement
Shares of Mahanagar Telephone Nigam Limited today slipped by 1.58% to settle at ₹28.56, reflecting a dip from previous trading levels. The stock saw an intraday low of ₹28.50 and recorded a total traded volume of 732,433 shares.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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