Sterling and Wilson Renewable Energy Limited has informed the Exchange about Giving guarantees/indemnity/ becoming a surety for third party
SWSOLAR · price
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Sterling and Wilson Renewable Energy has issued a Parent Company Guarantee (PCG) of USD 31 million (approximately ₹293.04 crore) to ABSA Bank Limited. The guarantee serves as security for a non-fund based working capital (guarantees) facility availed by its step-down subsidiary, Sterling and Wilson Engineering (Pty) Ltd. The facility will be used to support solar power projects in South Africa. The PCG is valid for six years from the date of issuance and is at arm's length, with no promoter or promoter group interest in the transaction. The company has confirmed this PCG will be recorded as a contingent liability on its books.
This creates a contingent liability of ~₹293 crore for Sterling and Wilson Renewable Energy, exposing the parent to potential obligations if the subsidiary defaults. However, it enables the subsidiary to secure working capital support for executing solar projects in South Africa, supporting business expansion in the international renewable energy segment.