COMPLIANCE WITH REGULATION 30 OF SEBI (LODR), 2015- NON FUNDING OF 5TH SEMIANNUAL INTEREST PAYMENT IN ESCROW ACCOUNT MAINTAINED IN BANK OF INDIA WRT MTNLBOND SERIES VIIC (INE153A08121)
MTNL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
MTNL has informed the stock exchanges that it could not fund the escrow account with Bank of India for the 5th semi-annual interest payment on its 7.78% Bond Series VIIC (INE153A08121), which falls due on 10 August 2025. Under the Tri-Partite Agreement with the Department of Telecommunications and Beacon Trusteeship, MTNL was required to deposit the interest amount into the escrow account 10 days before the due date, but insufficient funds prevented this. The company clarified that these are Sovereign Guaranteed Bonds issued by the Government of India, meaning that if MTNL defaults, the Debenture Trustee can invoke the sovereign guarantee and the government is obligated to pay. This is the latest in a series of financial stress signals from the state-run telecom operator.
This is a credit negative event highlighting MTNL's severe liquidity crunch, though bondholders are protected by the Government of India sovereign guarantee. The announcement is likely to put further pressure on MTNL's stock sentiment and reinforce concerns about the company's financial viability without continued government support.