MTNL Fails to Fund Semi-Annual Interest for Bond Series VIIIA Due to Insufficient Funds
Mahanagar Telephone Nigam Limited (MTNL) has confirmed that it could not fund the sixth semi-annual interest payment relating to the 7.59% MTNL Bond Series VIIIA (INE153A08154). The interest payment was due on July 20, 2026, and MTNL was obligated to deposit the funds into an ESCROW Account maintained in Bank of India at least 10 days prior to the due date, as per the Structured Payment Mechanism defined by the Tri-Partite Agreement (TPA).The failure to fund the interest payment was attributed to insufficient funds within MTNL.
The bonds issued by MTNL are Sovereign Guaranteed by the Government of India. The company noted that if any default occurs in the payment of Principal or Interest on these Bonds, the Sovereign Guarantee will be invoked by the Debenture Trustee. Under the existing Tripartite Agreements (TPA) between the Government of India, the Debenture Trustee, and MTNL—which were filed when the bonds were listed—the Government of India is obliged to make the corresponding payment to MTNL upon invoking the guarantee.
MTNL Stock Price Movement
Mahanagar Telephone Nigam Limited shares are edging higher to ₹29.49 as of 12:46 PM, gaining 1.87% in live trading. The equity saw robust activity, with a total traded volume of 640,117 shares during the current market session.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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