Mahanagar Telephone Nigam Limited (MTNL) has reported that the 10th semi-annual interest on its 6.85% Bond Series VI (INE153A08097) falls due on December 21, 2025. The update was filed with BSE and NSE on December 11, 2025, as part of the company’s routine disclosure requirements.
The filing outlines the steps expected under the bond structure and the current position regarding the upcoming payment.
According to the Tripartite Agreement between MTNL, the Department of Telecommunications (DoT) and SBICAP Trustee Company Limited, MTNL must deposit the interest amount into an escrow account held with Bank of India.
This deposit is required 10 days before the due date, forming part of the structured mechanism designed for servicing these bonds. The system ensures that the trustee has the funds available ahead of each payment cycle.
In its filing, MTNL stated that it has been unable to fund the escrow account with the amount needed for the December interest payment. The company cited insufficient funds as the reason for not meeting the pre-funding requirement.
The filing notes that all MTNL bonds are backed by a sovereign guarantee from the Government of India. If MTNL does not meet its repayment obligations, the debenture trustee may invoke this guarantee.
Under the terms of the Tripartite Agreement, once invoked, the Government is responsible for making the payment. These agreements were shared with the exchanges when the bonds were first listed.
The communication was addressed to BSE and NSE; it confirms the non-funding of the escrow account. The company has asked the exchanges to take the update on record. The letter was signed by the company secretary and dated December 11, 2025.
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As of December 12, 2025, 10:13 am, MTNL share price was trading at ₹37.07, a 1.15% down from the previous closing price.
MTNL has reported that it was unable to meet the escrow funding requirement for the upcoming interest payment due to limited funds. The sovereign guarantee framework remains available under the existing agreement.
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Published on: Dec 12, 2025, 11:27 AM IST
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