Mahanagar telephone nigam Limited (MTNL) has disclosed to stock exchanges its inability to fund the escrow account for the upcoming semi-annual interest payment on its Bond Series VII E, marking a significant development in the state-owned telecom company's financial obligations.

Bond Payment Details

The company informed BSE and NSE on March 13, 2026, that it could not fund the escrow account for the 6th semi-annual interest payment related to its 7.75% MTNL Bond Series VII E. The payment details are as follows:

Structured Payment Mechanism

Under the Structured Payment Mechanism established through a Tri-Partite Agreement (TPA), MTNL is required to fund the semi-annual interest into the escrow account maintained at Bank of India with adequate amount 10 days before the due date. The TPA involves three key parties:

• MTNL
• Department of Telecommunications (DoT), Ministry of Communications, Government of India
• Beacon Trusteeship Limited

The company cited insufficient funds as the primary reason for its inability to meet this funding requirement ahead of the March 24, 2026 due date.

Sovereign Guarantee Protection

Despite the funding shortfall, MTNL emphasized that all bonds issued by the company carry sovereign guarantee backing from the Government of India. The company outlined the guarantee mechanism in its disclosure:

In case of any default by MTNL in payment of principal and interest on the bonds, the sovereign guarantee can be invoked by the Debenture Trustee, obligating the Government of India to make the payment on behalf of MTNL.

Regulatory Compliance

The disclosure was made in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, ensuring transparency with stakeholders regarding the company's inability to meet its funding obligations. Company Secretary Ratan Mani Sumit signed the official communication to both stock exchanges, requesting them to take the information on record.

This development highlights the ongoing financial challenges faced by the state-owned telecommunications company while emphasizing the protective framework provided through government backing for bondholders.

Mahanagar Telephone Nigam Limited has completed the funding of its designated escrow account for the upcoming semi-annual interest payment on its bond series. The state-owned telecommunications company informed stock exchanges about this development through a regulatory filing on March 4, 2026.

Bond Interest Payment Details

The company has funded the escrow account maintained with Bank of India for the 4th semi-annual interest payment related to its 7.51% MTNL Bond Series VIIID. The funding was completed on March 4, 2026, ensuring timely preparation for the interest payment due on March 6, 2026.

Regulatory Compliance

The announcement was made in compliance with Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. MTNL notified both BSE Limited and National Stock Exchange of India Limited about the funding completion, maintaining transparency with stakeholders and regulatory authorities.

The company's proactive approach in funding the escrow account two days before the due date demonstrates its commitment to meeting bond obligations punctually. This action ensures that bondholders will receive their interest payments as scheduled, maintaining the company's credibility in the debt market.

Corporate Communication

The notification was signed by Ratan Mani Sumit, Company Secretary of MTNL, and was digitally authenticated on March 4, 2026. The company referenced its previous communication dated February 24, 2026, indicating ongoing coordination regarding this interest payment process.

This development reflects MTNL's systematic approach to debt servicing and its adherence to regulatory disclosure requirements, providing assurance to bondholders and the investment community about the company's financial discipline.