Sterling and Wilson Renewable Energy Limited has informed the Exchange about Issuance of Parent Company Guarantee
SWSOLAR · price
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Sterling and Wilson Renewable Energy has issued a Parent Company Guarantee to Nedbank Limited for USD 34 million (approximately INR 317 Crore). This guarantee secures an additional non-fund based working capital facility availed by its step-down subsidiary, Sterling and Wilson Engineering (Pty) Ltd., in South Africa. The facility is meant to support the subsidiary's solar power projects in the region. The guarantee is valid until November 11, 2032, and the transaction is stated to be at arm's length with no promoter interest involved. This constitutes a contingent liability for the listed parent company.
The guarantee creates a contingent liability of ~INR 317 Crore on the parent company if the subsidiary defaults. However, this is a routine corporate guarantee supporting subsidiary-level project financing for solar work in South Africa and is not expected to have a material near-term impact on the stock, though investors should monitor the subsidiary's project execution.