Mahanagar Telephone Nigam Limited (MTNL) has failed to deposit interest on sovereign guarantee bonds into its escrow account, due on 24 March, 2026, the company said in a regulatory filing.
Under the structured payment mechanism of the tri-partite agreement (TPA) signed among MTNL, the Department of Telecommunications (DoT), and Beacon Trusteeship Limited, the company is required to fund the semi-annual interest into the escrow account maintained with Bank of India at least 10 days before the due date, which in this case falls on 24 March 2026.
MTNL said all bonds issued by it are sovereign guaranteed bonds backed by the central government. In the event of a default by MTNL on payment of principal or interest on its bonds, the sovereign guarantee will be invoked by the debenture trustee, and the government of India will be obliged to make the payment on MTNL’s behalf, the filing added.
