Key Quantitative Figures
- Bond Series: 7.59% MTNL Bond Series VIIIA (INE153A08154)
- Interest Due: 6th Semi-Annual Interest payment
- Due Date: July 20, 2026
- Required Funding Timeline: 10 days before due date (by July 10, 2026)
Dates of Action
- Disclosure Date: July 10, 2026
- Interest Due Date: July 20, 2026
- Funding Deadline: July 10, 2026 (10 days prior to due date)
Parties Involved
- Issuer: Mahanagar Telephone Nigam Limited (MTNL)
- Guarantor: Government of India (Sovereign Guarantee)
- Regulatory Authority: Department of Telecommunications (DoT), Ministry of Communications
- Debenture Trustee: Beacon Trusteeship Limited
- Escrow Bank: Bank of India
- Stock Exchanges: BSE Limited (Scrip Code: 500108) and National Stock Exchange of India Limited (Scrip Symbol: MTNL)
Purpose and Rationale
The disclosure informs about MTNL's inability to fund the escrow account maintained with Bank of India with adequate amount for the semi-annual interest payment due to insufficient funds.
Financial Impact
MTNL explicitly states it could not fund the escrow account due to insufficient funds. The specific monetary amount of the interest payment is not quantified in this disclosure.
Contingency Provisions
All bonds issued by MTNL carry Sovereign Guarantee by Government of India. In case of default by MTNL in payment of principal and interest, the Sovereign Guarantee can be invoked by the Debenture Trustee (Beacon Trusteeship Limited), and the Government of India is obliged to make the payment to MTNL for the same.
Legal Framework
The invocation of Sovereign Guarantee is based on Tripartite Agreements (TPA) entered into between Government of India, Debenture Trustee and MTNL, which were filed with BSE when the bonds were listed.