The state-owned telecommunication company, Mahanagar Telephone Nigam Limited, which is popularly referred to as MTNL, has officially reported to have finalized the funding of interest on two of its important series of bonds. This financial action is based on the 5th and 6th semi-annual interest payments of the 7.61% Bond Series VIII B and 7.80% Bond Series VIID of the company. This is based on the official communication that the funds have been deposited successfully into allocated escrow accounts to ensure that the entire regulatory and financing requirements are met promptly.
Funding process and primary focus
The funding was done using escrow accounts deposited at the Bank of India, in particular. These funds have been obtained by the undertaking in the public sector many years ahead of the actual due date, and this can be seen as an indication of the commitment of the undertaking in regard to keeping itself fiscally disciplined and following the scheduled payment patterns that they have set on their debt instruments. This move is within the wider scope of the company to control its financial obligations and transparency to its institutional and individual investors.
The 5th semi-annual interest payment of the 7.61% MTNL Bond Series VIII B with the International Securities Identification Number INE153A08162 will be among the main areas of interest in this financial update. MTNL has verified that the financing in this particular interest cycle was done on February 21, 2026. This preparation provides that the payment will be ready to be disbursed as of the scheduled date of February 24, 2026.
The fact that this series has been successfully funded is an indication of how systematically MTNL has been proceeding in its efforts to service its bonds. Through the escrow account mechanism with the Bank of India, the company will be in a position to have the interest amount in the form of a ring-fenced account that can only be accessed by the bondholders, hence reducing risks related to fund availability. It is a routine provision of such high-value state-owned bonds, which gives an added protection to the players in the capital market.
Funding progress and regulatory disclosures
Besides the VIII B series, MTNL has also covered its liability on the 7.80% MTL Bond Series VIID, bearing the ISIN INE153A08139. In this specific case, the interest payment has been financed by the company through the escrow account on the 6th semi-annual interest payment. This payment was also deposited into this specific account on February 21, 2026. This guarantees that the interest to be paid on February 24, 2026, is well covered by the available capital.
These funding activities are synchronized hence depicting the coordinated financial management of MTNL. The 5th and the 6th interest payments on these two series were made a priority and, as such, were needed to pay all the creditors of these two particular bond issues their dues immediately. Such an active financial strategy is necessary to keep the integrity of the bond series and accomplish the commitment to investors when the bond is issued.
MTNL has honored its reporting obligations by issuing these disclosures as required under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. These rules require that listed companies disclose information about material events promptly on matters that may affect the interests of shareholders and creditors. By submitting this information to the stock exchanges, the stock market has now been made aware of the present financial situation of the company as far as debt repayment is concerned.
These formal intimations about the funding of these escrow accounts were forwarded to the premier stock exchanges in India, i.e., the Bombay Stock Exchange (BSE) and the National Stock Exchange of India (NSE). In the BSE, the company is listed under the Scrip code 500108, but on the NSE, it is listed under the name of Mumbai Telecom Ltd. The Company Secretary of MTNL, Ratan Mani Sumit, signed and verified the official communications, which proved the authenticity and legal validity of the financial disclosures.
Conclusion
The successful funding of Bond Series VIII B and VIID semi-annual interest payments of the 5th and 6th interest payments is a major milestone in the operations of MTNL. The state-owned telecom player has proven itself to be a worthy ally in fulfilling bond-related obligations by depositing the amounts needed by the Bank of India escrows by the February 24 deadline.
Such compliance with the SEBI Listing Obligations and Disclosure Requirements will make sure that the company is comfortable with the national financial regulations and provide a feeling of safety to its bondholders and the rest of the financial community.
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