Signs loan agreement to lend USD 4,500,000 to two overseas wholly owned subsidiaries at 8.5% for 5 years
The company has entered a loan agreement in which it is the lender and two of its wholly owned overseas subsidiaries are the borrowers.
By ScoutQuest · · 2 min read
- Loan Size
- USD 4,500,000
- Interest Rate and Tenure
- 8.5% p.a., tenure 5 years
- Loan Outstanding / Nature
- unsecured; Loan amount outstanding as on date of disclosure: Nil
What was disclosed
The company has informed the stock exchanges that it has entered into a loan agreement in which it acts as the lender. The borrowers are two of its wholly owned subsidiaries: Fusion BPO Services Ltd., a UK-based wholly owned subsidiary, and Fusion BPO Services Limited, a Canada-based wholly owned subsidiary. The loan agreement was executed on November 05, 2026.
Terms at a glance
- Size of the agreement: USD 4,500,000
- Rate of interest: 8.5% p.a.
- Tenure: 5 years from the date of disbursal
- Nature of loan: unsecured
- Loan amount outstanding as on the date of disclosure: Nil
- Company's holding in both borrowers: 100%
Why the money is being lent
The stated purpose is the availing of a loan facility by Fusion BPO Services Ltd. (UK) from the lender, exclusively for onward lending to Fusion BPO Services Limited (Canada) for repayment of its loan. In short, the India-listed parent lends to its UK arm, which passes the funds to the Canada arm to repay a loan there.
Related party angle
The update confirms that the transaction falls within related party transactions and that it is done on an arm's length basis. Both subsidiaries are related to the company also because of common directors: Mr. Pankaj Dhanuka, Chairman and Managing Director, CEO, and Mr. Kishore Saraogi, Managing Director and COO, are common directors in the company and in both wholly owned subsidiaries.
What a retail investor can take away
- The money is moving within the group, between the listed parent and two subsidiaries it owns fully, at a stated interest rate of 8.5% p.a. over 5 years.
- The loan is unsecured, meaning no security has been provided against it, and nothing is outstanding on this loan as on the date of disclosure.
- No shares are being issued to the borrowing entities, so this agreement does not bring in new equity or change the share capital.
How the news can be read
A loan to wholly owned overseas units is an intra-group funding step rather than a fresh business win. On one side, the parent earns interest at 8.5% p.a. on the amount lent; on the other, cash moves out to group entities and is unsecured. The interest rate, tenure and arm's length confirmation give investors the terms on which the money moves.
Also from Fusion CX
Lender role: loan agreement with UK wholly owned subsidiary up to USD 2,300,000 at 8.5% p.a
28 Oct 2026
Company Secretary continues as Compliance Officer, also to oversee Insider Trading Code
22 Oct 2026
KFin Technologies appointed Registrar and Share Transfer Agent
22 Oct 2026
More numbers
- Size of loan agreementUSD 4,500,000
- Rate of interest on the loan8.5% p.a.
- Tenure of the loan5 (Five) years
- Company's stake in Borrower 1 and Borrower 2100%
- Loan amount outstanding as on date of disclosureNil
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