Mahanagar Telephone Nigam Limited — Important, 31-01-2025: General Updates

MTNL has informed that it is unable to fund the escrow account necessary for the 4th semi-annual interest payment due for its 7.78% Bond Series VIIC on 10.02.2025. This decision comes as a result of insufficient funds. Although the bonds are sovereign guaranteed by the Government of India, any default in payment of principal or interest could lead to the invocation of this guarantee by the Debenture Trustee, obligating the government to fulfill the payment to MTNL. Investors should closely monitor this situation, given the potential implications for the company’s financial stability and operational outlook.