Announced Wed, 22 Jul · 23:17 IST
SBLC for German subsidiary renewed and enhanced to EUR 20 million
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BIRLANU · price
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Price reaction · full curve 14 horizons · vs prior close
+1.2%1-day move
₹1337.50
prior close
₹1354.90
base price
After-mkt
timing
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———-1.5+1.2+2.0————————
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AI summary
BirlaNu Limited has renewed and enhanced a Standby Letter of Credit from EUR 10.73 million to EUR 20.00 million in favor of ICICI Bank UK PLC Germany Branch. This secures working capital loan facilities for BirlaNu International GmbH, the company's wholly-owned German subsidiary. The SBLC is valid for 12 months. The subsidiary will pay a service fee of 0.53 percent per annum, and the parent will maintain a security cover of 1.25 times on its assets.
Likely market impact
Higher guarantee exposure to German subsidiary, nearly doubled from earlier level. Parent assets at risk if subsidiary defaults on the EUR 20 million facility.