STL Network Limited Bonds Explained: YTM, Credit Rating, Structure & Key Risks

Introduction

Corporate bonds are a common funding mechanism used by companies to raise capital for operational and growth requirements. In India’s debt market, bonds issued by mid-sized companies are often structured as secured instruments with defined coupon payments and maturity timelines.

Search queries such as stl network limited bonds or stl network limited bonds review typically reflect an effort to understand how a specific bond issue is structured, how returns such as yield to maturity (YTM) are calculated, and what risks apply.

This article provides a purely educational explanation of STL Network Limited bonds, covering their structure, credit rating, collateral framework, and key considerations, without ranking, recommending, or assessing suitability.

Overview of STL Network Limited Bonds

STL Network Limited bonds refer to non-convertible debentures (NCDs) issued by STL Network Limited through private placement. These bonds are:

Listed on recognised stock exchanges

Senior secured in nature

Issued with a fixed coupon structure

Each bond series is uniquely identified by an ISIN and governed by the terms outlined in the offer document and debenture trust deed.

Key Bond Features at a Glance

The key disclosed features of the STL Network Limited Sept’27 bond series include:

Issuer: STL Network Limited

Bond Name: STL Network Limited Sept’27

ISIN: INE1VXE07015

Nature: Listed

Seniority: Senior

Bond Type: Senior Secured

Mode of Issue: Private Placement (EBP)

Date of Issue: 02 December 2025

Date of Maturity: 02 September 2027

Tenure: Approximately 1 year 7 months

Face Value: ₹1,00,000.03 per bond

Coupon Rate: 10.25 percent (fixed)

Interest Payout Frequency: Quarterly

Yield to Maturity (YTM): 11.60 percent

Credit Rating: Ind-Ra A- (Stable)

Debenture Trustee: Axis Trustee Services Limited

Collateral Coverage: 1.20x

Minimum Investment Amount: ₹1,00,239

These details define the contractual and financial structure of the bond.

Bond Instrument Structure

STL Network Limited bonds are structured as senior secured non-convertible debentures, which means:

They represent a debt obligation of the issuer

Bondholders have priority over unsecured creditors

The bonds are backed by specified collateral

The coupon rate and maturity date are fixed at issuance

The rights and obligations of bondholders are governed by:

The offer document

The debenture trust deed

Applicable SEBI and exchange regulations

Yield to Maturity (YTM) and Coupon Rate

Coupon Rate

The coupon rate of STL Network Limited bonds is 10.25 percent, paid on the face value of the bond. Interest is paid quarterly, providing periodic cash flows during the bond’s tenure.

Yield to Maturity (YTM)

Yield to maturity (YTM) of 11.60 percent reflects the annualised return implied if the bond is held until maturity, assuming:

All interest payments are received as scheduled

The bond is purchased at the prevailing market price

The principal is repaid in full at maturity

YTM differs from the coupon rate because it accounts for:

Purchase price (clean and dirty price)

Remaining tenure

Timing of cash flows

YTM is a calculated metric and not a guaranteed outcome.

Bond Price, Face Value and ISIN

Face Value

The face value of the bond is ₹1,00,000.03, which represents:

The principal amount

The base on which interest is calculated

The amount scheduled for repayment at maturity

Bond Price

Clean Price: ₹98.80

Dirty Price: ₹100.23

The difference reflects accrued interest between coupon dates.

ISIN

The bond is identified by ISIN INE1VXE07015, which enables:

Tracking of disclosures

Exchange trading and settlement

Monitoring of rating updates

Credit Rating Overview and Interpretation

STL Network Limited bonds carry a credit rating of A- (Stable) assigned by India Ratings and Research (Ind-Ra).

What the Rating Indicates

A-: Adequate degree of safety regarding timely servicing of financial obligations

Stable Outlook: No immediate expectation of rating change

Credit ratings:

Are opinions, not guarantees

Are based on information available at the time of assessment

May change due to financial, operational, or market developments

Issuer Background: STL Network Limited

STL Network Limited operates in the infrastructure and networking segment, providing solutions related to network deployment and associated services. The company’s operations are linked to infrastructure development cycles and execution capabilities.

As a corporate issuer, STL Network Limited raises funds through debt instruments such as bonds to support working capital and project-related requirements.

Security and Collateral Structure

The bonds are secured, with disclosed collateral coverage of 1.20x, meaning:

The value of collateral exceeds the outstanding bond amount by approximately 20 percent

Collateral is held and monitored under the supervision of the debenture trustee, subject to terms specified in the trust deed.

Security reduces loss severity but does not eliminate credit risk.

Interest Payout and Maturity Profile

Interest Payout

Interest is paid quarterly

Payments are based on the fixed coupon rate

Cash flows are scheduled as per the offer terms

Maturity

The bond matures on 02 September 2027

Principal repayment is scheduled at maturity, subject to issuer performance

The bond’s remaining tenure influences interest rate sensitivity and reinvestment considerations.

Key Risks Associated with STL Network Limited Bonds

Like all corporate bonds, STL Network Limited bonds involve several risks:

Credit Risk: Dependence on the issuer’s ability to service debt

Business Risk: Exposure to infrastructure and project execution cycles

Interest Rate Risk: Market price sensitivity to rate changes

Liquidity Risk: Potential difficulty in selling before maturity

Collateral Risk: Realisable value of secured assets may vary

These risks apply regardless of coupon level or listing status.

Liquidity and Secondary Market Considerations

Although the bonds are listed, secondary market liquidity may be limited. Corporate bonds typically trade less frequently than equities, and exit prices depend on:

Market demand

Interest rate environment

Issuer-specific developments

Listing facilitates transparency but does not ensure liquidity.

Common Misconceptions About Corporate Bonds Drag

Common misconceptions include:

Listed bonds are always easy to sell

Secured bonds are risk-free

Credit ratings guarantee repayment

Coupon rate equals actual return

Understanding these limitations helps interpret bond information correctly.

Conclusion

STL Network Limited bonds are structured as senior secured, listed debt instruments with a fixed coupon rate and defined maturity. Understanding bond structure, YTM calculation, credit rating context, collateral framework, and associated risks provides clarity on how these instruments function within the corporate bond market.

These bonds should be viewed as contractual obligations subject to issuer-specific and market-related uncertainties rather than as standardised or risk-free products.

Disclaimer

This blog is intended solely for educational and informational purposes. The bonds and securities mentioned herein are illustrative examples and should not be construed as investment advice or personal recommendations. BondScanner does not provide personalized investment advice through this content.

Readers are advised to independently evaluate investment options and seek professional guidance before making financial decisions. Investments in bonds and other securities are subject to market risks, including the possible loss of principal. Please read all offer documents and risk disclosures carefully before investing.