Board approves KES 169 million corporate guarantee for Kenya subsidiary
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Board approved a corporate guarantee of KES 169,000,000 (about 169 million Kenya Shillings) for Quantum Lubricants (E.A.) Limited, a step-down subsidiary in Kenya, in favour of Stanbic Bank Kenya Limited. The guarantee covers a new credit facility being availed by the Kenya subsidiary. The promoter group has no interest in the transaction, which is at arms length. The facility is on standard terms and covers the repayment obligations of the subsidiary.
Company takes on a contingent liability of around 169 million Kenya Shillings for its Kenya subsidiary's loan. No immediate cash outflow, but parent is on the hook if subsidiary defaults.