Please find update on Corporate Guarantee issued by the Company as part of term Loan documentation between NIIT (Ireland) Limited and ICICI Bank UK PLC.
NIITMTS · price
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NIIT Learning Systems has issued a corporate guarantee of up to EUR 15.75 million to ICICI Bank UK PLC on behalf of its wholly owned overseas subsidiary NIIT (Ireland) Limited. The guarantee backs a EUR 15 million term loan facility that the subsidiary is availing from ICICI Bank UK PLC. The guarantee is valid for up to 5 years and 30 days. This is an update to a board approval first disclosed on July 9, 2025, confirming that the guarantee has now been formally executed.
The guarantee creates a contingent liability of up to EUR 15.75 million (approximately ₹150+ crore) for the parent company, meaning NIIT Learning Systems is on the hook if its Irish subsidiary defaults. While this enables funding for the subsidiary's growth, it increases the parent's off-balance-sheet exposure and is a moderate negative signal for standalone risk, though it is a routine cross-border financing arrangement for a wholly owned entity.