Corporate Guarantee Extended to ICICI Bank for Subsidiary's Rs 34 Crore Credit Facilities
The company has extended a corporate guarantee in favour of ICICI Bank for its subsidiary Mumbai Eco Solutions Pvt Ltd, covering credit facilities of ₹ 34.00 Crore.
- Corporate Guarantee Amount
- ₹ 34.00 Crore
- Liability Percentage
- 51% of the outstanding amount
- Subsidiary Name
- Mumbai Eco Solutions Pvt Ltd
- Lender
- ICICI Bank Limited
- Guarantee Type
- Continuing, irrevocable and unconditional
What was shared
Antony Waste Handling Cell has informed the exchanges that it has extended a corporate guarantee in favour of ICICI Bank Limited for and on behalf of Mumbai Eco Solutions Private Limited, a subsidiary.
Key terms
- Credit facilities sanctioned to the subsidiary aggregate up to ₹ 34.00 Crore
- The company's liability is to the extent of 51% of the outstanding amount under those facilities
- The guarantee is continuing, irrevocable and unconditional
- The guarantor's liability is co-extensive with that of the borrower, subject to aggregate outstanding amounts under the facility documents
- It can be invoked by the lender upon an event of default and remains valid until full repayment and discharge of all obligations
Interest and pricing
The promoter, promoter group and group companies are not interested in this transaction, and the guarantee is stated to be at arm's length.
Stated impact
The company states there is no immediate impact, except to the extent of the amount guaranteed, in the event Mumbai Eco is unable to meet its repayment obligations to the lender. The corporate guarantee constitutes a contingent liability for the company.
How to read it
A corporate guarantee means the parent stands behind the subsidiary's borrowing. No cash moves today, but if the subsidiary defaults, the lender can call on the parent up to its share of the outstanding amount. Investors typically watch such guarantees as part of the group's overall contingent liabilities and the subsidiary's ability to service debt.
More numbers
- Credit facilities guaranteed (subsidiary)₹ 34.00 Crore
- Extent of company's liability under guarantee51%
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