KEC International Limited has informed the Exchange about issuance of Corporate guarantee on behalf of its subsidiary company.
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KEC International has issued a corporate guarantee of USD 13.20 million (approximately ₹110 crore) on behalf of its subsidiary, Al Sharif Group & KEC Limited Company, an overseas step-down subsidiary. The guarantee is in favour of an overseas bank that has extended a banking facility to the subsidiary. The transaction is at arm's length and promoters/group companies have no interest in it. The guarantee is treated as a contingent liability for KEC International with no current material impact on the company.
This adds to KEC International's contingent liabilities but is a routine parent-subsidiary arrangement to support overseas operations. Shareholders should note the exposure but no immediate financial impact is expected as long as the subsidiary remains in good standing.