MAHANAGAR TELEPHONE NIGAM LIMITED
Nature of Disclosure: Regulatory compliance filing under SEBI (LODR) Regulations, 2015 regarding non-funding of bond interest payment.
Key Event: MTNL failed to fund the 11th semi-annual interest payment for its 6.85% MTNL Bond Series VI (INE153A08097) into the escrow account maintained with Bank of India. The interest payment was due on June 21, 2026.
Payment Mechanism Details:
- As per the Structured Payment Mechanism of the Tri-Partite Agreement (TPA) signed among MTNL, Department of Telecommunications (DoT), Ministry of Communications, Government of India and SBICAP Trustee Company Limited
- MTNL was required to fund the semi-annual interest into the ESCROW Account with adequate amount 10 days before the due date (by June 11, 2026)
Sovereign Guarantee Provision:
- All bonds issued by MTNL are Sovereign Guaranteed Bonds by Government of India
- In case of default by MTNL in payment of Principal and Interest, the Sovereign Guarantee will be invoked by the Debenture Trustee
- Government of India is obliged to make the payment to MTNL for the same
- The invocation process is based on Tripartite Agreements (TPA) filed with BSE when Bonds were listed
Reason for Non-Funding: Due to insufficient funds, MTNL could not fund the ESCROW Account maintained in Bank of India with the adequate amount required for the interest payment.
Regulatory Compliance: This disclosure is made pursuant to Regulation 30 & 51 of SEBI (LODR) Regulations, 2015.
Document Authentication: Digitally signed by Ratan Mani Sumit, Company Secretary, on June 11, 2026 at 14:49:39 IST.