Samvardhana Motherson International Limited has submitted with the Stock Exchange disclosure under regulation 30 of SEBI(Listing Obligations and Disclosure Requirements) Regulations, 2015 regarding creation of Corporate Guarantee in favour its wholly owned subsidiary.
MOTHERSON · price
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Samvardhana Motherson International Limited has issued a corporate guarantee for a Revolving Credit Facility availed by its wholly owned subsidiary, Motherson Global Investments B.V. (MGI B.V.). The facility is for EUR 720 million (approx Rs 6,500 crore at current rates), with the company's potential liability capped at EUR 756 million (105%). The guarantee remains valid until August 15, 2029. An existing revolving facility of EUR 670 million will be cancelled, while obligations of EUR 737 million under the old facility will continue until August 16, 2026. The company states there is no impact on its Consolidated Financial Statements as the facility is for the wholly owned subsidiary.
This guarantee increases the parent company's contingent liability exposure to EUR 756 million but is unlikely to directly impact the stock as it involves a wholly owned subsidiary. The refinancing of existing debt into a larger facility could signal MGI B.V.'s funding needs or growth plans.