Announced Mon, 27 Apr · 16:32 IST
MTNL unable to fund escrow for bond interest payment
MTNL · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Price reaction · full curve 14 horizons · vs prior close
-0.7%1-day move
₹31.82
prior close
₹31.75
base price
After-mkt
timing
5m10m15m30m1D2D3D4D5D7D15D1M2M3M
+0.3+0.1-0.2-0.3-0.7-1.5-2.1-1.0+0.3+0.8-9.4-5.1-6.9—
Up moveDown movePending
AI summary
MTNL has informed exchanges that it could not fund the escrow account in Bank of India for the 5th semi-annual interest payment of 7.80% on its Bond Series VIII-C (INE153A08170), due on May 7, 2026, due to insufficient funds. All MTNL bonds are sovereign guaranteed by the Government of India. Under the Tri-Partite Agreement, in case of default, the Debenture Trustee will invoke the sovereign guarantee and GoI is obliged to make the payment to MTNL, which will then pay bondholders.
Likely market impact
Highlights MTNL's liquidity weakness; bondholders remain protected by sovereign guarantee though payments may be delayed.