Mahanagar Telephone Nigam Limited — Important, 14-02-2025: General Updates

MTNL has notified that it is unable to fund the 4th semi-annual interest payment for its 7.80% Bond Series VII-D, which is due soon. The company did not have sufficient funds to deposit the required amount into the ESCROW Account, as mandated by the Structured Payment Mechanism outlined in their Tripartite Agreement. This potential default could lead to activation of the sovereign guarantee provided by the Government of India, which obliges the government to cover any missed payments. Investors should remain alert to this situation, as it indicates financial challenges that could impact MTNL's operational stability.