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MTNL Faces Funding Shortfall for Bond Interest Payment

Story Highlights
  • MTNL cannot fund the 9th semi-annual interest for its Bond Series V due to insufficient funds.
  • The sovereign guarantee may be invoked due to MTNL’s failure to deposit funds as per the agreement.
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MTNL Faces Funding Shortfall for Bond Interest Payment

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Mahanagar Telephone Nigam Limited ( (IN:MTNL) ) has shared an update.

Mahanagar Telephone Nigam Limited (MTNL) has announced that it will not be able to fund the 9th semi-annual interest payment for its 7.05% Bond Series V due on April 12, 2025, due to insufficient funds. Despite the bonds being sovereign guaranteed by the Government of India, the company has failed to deposit the necessary amount into the escrow account as per the Tri-Partite Agreement, which could lead to the invocation of the sovereign guarantee by the debenture trustee.

More about Mahanagar Telephone Nigam Limited

Mahanagar Telephone Nigam Limited (MTNL) is a government-owned enterprise in India, primarily operating in the telecommunications industry. It provides a range of telecom services, including fixed-line telephony, mobile services, and internet connectivity, with a focus on urban areas such as Delhi and Mumbai.

YTD Price Performance: -11.48%

Average Trading Volume: 874,863

Current Market Cap: 27.15B INR

Learn more about MTNL stock on TipRanks’ Stock Analysis page.

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