MTNL gives update on payment of semi-annual interest in ESCROW account of Bank of India
The state-owned telecom company has also mentioned that all Bonds issued by MTNL are Sovereign Guaranteed Bonds by Government of India.
MTNL gives update on payment of semi-annual interest in ESCROW account of Bank of India
New Delhi: Government of India enterprise, MTNL has announced the update of payment of 4th Semi Annual Interest of 7.59 % MTNL Bond Series VIIIA (INE153A08154) which is due on 20th July, 2025.
Therefore, as per the Structured Payment Mechanism of Tri-Partite Agreement (TPA) signed among MTNL, Department of Telecommunications (DoT), Ministry of Communications, Government of India and Beacon Trusteeship Limited, MTNL has to fund the semi-annual interest into the ESCROW Account maintained in Bank of India with adequate amount 10 days before the due date.
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The state-owned telecom company has also mentioned that all Bonds issued by MTNL are Sovereign Guaranteed Bonds by Government of India. However, in case of any default made by MTNL in payment of Principal and Interest on the Bonds issued by it then Sovereign Guarantee will be invoked by the Debenture Trustee and the Government of India is obliged to make the payment to MTNL for the same.
Read Also : NHAI signs agreement with ICICI Bank for India’s First Multi-Lane Free Flow Tolling SystemThe invocation of Sovereign Guarantee is based on Tripartite Agreements (TPA) entered into between Government of India, Debenture Trustee and MTNL which were filed with BSE when Bonds were listed.
With respect to the provisions of TPA, MTNL has informed that due to insufficient funds MTNL could not fund the ESCROW Account maintained in Bank of India with the adequate amount. Kindly take the same on record.
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