Prestige Estates Projects Limited has informed the Exchange about issuance of Corporate Guarantee for Term Loan Facility availed by subsidiary of the Company.
PRESTIGE · price
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Prestige Estates Projects Limited is issuing a corporate guarantee of up to INR 300 Crores to Canara Bank to secure a term loan facility being availed by its subsidiary, Bharatnagar Buildcon LLP. The transaction is conducted at arm's length, and the promoter group has no direct interest in it. The filing was made under SEBI Regulation 30 disclosure requirements, with the details provided in Annexure I. The company notes this guarantee is a contingent liability but currently has no material impact on Prestige as the borrower is part of its consolidated group.
This is a contingent liability of up to INR 300 Crores on the parent company if the subsidiary defaults, but since it is an intra-group transaction, the consolidated financial position remains unchanged. Shareholders should monitor the subsidiary's debt servicing capability as repeated guarantees may indicate increased leverage within the group.