Loan agreement with wholly owned subsidiary: EUR 3.5 million at 8% p.a., tenor up to 6 years
BiralNu Ltd has entered into a Loan Agreement with BiralNu International GmbH, its wholly owned subsidiary.
By ScoutQuest · · 1 min read
- Loan Amount
- EUR 3.5 million
- Interest Rate
- 8% p.a.
- Tenor
- maximum of 6 (six) years from the Effective Date
What was announced
BiralNu Ltd has entered into a Loan Agreement with BiralNu International GmbH, a wholly owned subsidiary of the Company. BiralNu Ltd is the Lender and the subsidiary is the Borrower. The purpose is to grant a loan to the subsidiary for meeting its working capital requirements.
The terms in brief
- Size of the agreement: EUR 3.5 million
- Total amount of loan granted: Euro 3.5 million
- Interest: the loan amount bears an annual interest rate of 8% p.a.
- Tenor: a maximum of 6 (six) years from the Effective Date
- Security provided to the lender: None
- Total amount outstanding: Euro 20 million
Who the borrower is
The Borrower is a wholly owned subsidiary of the Company, and the Company holds 100% shares of the Borrower. Because of this relationship, the transaction falls within related party transactions, and the update states that the said transaction is at arm's length.
The agreement does not contain terms pertaining to the right to appoint directors, a first right to share subscription in case of issuance of shares, or a right to restrict any change in the capital structure.
Timeline
The loan agreement has been executed on October 29, 2026 and the required regulatory approvals have been received on November 2, 2026.
How to read this
This is an intra-group funding arrangement: money moves from the listed company to its own overseas subsidiary so that the subsidiary can run its working capital. The listed company earns interest at 8% p.a. on the amount lent, and the loan runs for a maximum of 6 (six) years. The disclosure notes that no security was provided to the lender for this loan.
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More numbers
- Size of agreementEUR 3.5 million
- Total amount of loan grantedEuro 3.5 million
- Total amount outstandingEuro 20 million
- Annual interest rate8% p.a.
- Maximum tenor6 (six) years
- Company's shareholding in the Borrower100%
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