KEC International Limited has informed the Exchange about extension of tenure of existing Corporate Guarantee issued on behalf of subsidiary company.
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KEC International has extended the tenure of an existing Corporate Guarantee of AED 175 million issued on behalf of its subsidiary, Al Sharif Group & KEC Limited Company (a Saudi Arabia-based joint venture). The guarantee was originally given in favour of an overseas bank that provides banking facilities to the subsidiary. The extension keeps the guarantee valid until August 14, 2028, effectively adding three more years to the arrangement. The company has clarified that promoters and group companies have no interest in this transaction. As of now, the guarantee remains only a contingent liability with no actual impact on KEC International's financials.
This is a routine extension of an existing guarantee for the company's overseas subsidiary and does not change KEC International's financial position. Shareholders should note that the AED 175 million guarantee is a contingent liability, meaning it could become a real obligation only if the subsidiary defaults on its bank facilities.