<h1>BirlaNu Ltd Renews and Enhances SBLC for Subsidiary's Working Capital Loan Facility</h1>
BirlaNu Limited has renewed and substantially enhanced a Stand by Letter of Credit (SBLC) in favor of ICICI Bank UK PLC, Germany Branch. The commitment secures the working capital demand loan facilities availed by BirlaNu International GmbH, the company’s wholly-owned subsidiary.
The enhancement raises the aggregate amount of the SBLC from an initial level up to EUR 10.73 million to EUR 20.00 million. This transaction was formalized on July 22, 2026, and provides a 12-month validity period for the guarantee instrument.
The agreement stipulates specific terms related to security and financial obligations between the entities. BirIaNu International GmbH has agreed to compensate BirlaNu Limited through a service fee at a rate of 0.53% per annum, calculated on a pro-rata basis against the total outstanding liability amount under the facility agreement. Furthermore, the German subsidiary must reimburse all actual processing fees and commission, along with applicable taxes, paid by BirlaNu Limited to ICICI Bank India as per the mutually agreed terms.
A crucial component of the arrangement involves creating an exclusive charge over the property of BirlaNu Limited. This ensures that a security cover equivalent to 1.25 times the facility tenor is maintained throughout the period. The SBLC acts as a guarantee, meaning in the event of any default by BirIaNu International GmbH concerning payment or repayment under the Facility Documents, ICICI Bank UK PLC retains the right to invoke the charge created over BirlaNu Limited’s assets. Upon such demand, BirlaNu Limited is obligated to repay the bank all amounts payable by the borrower, up to EUR 20.00 million.
Key details of the SBLC renewal and enhancement are presented below:
| Particular | Detail |
|---|---|
| Guarantor | BirlaNu Limited |
| Lender/Bank | ICICI Bank UK PLC, Germany Branch |
| Beneficiary (Borrower) | BirIaNu International GmbH, a wholly-owned subsidiary of BirlaNu Ltd. |
| Enhanced SBLC Amount | Up to EUR 20.00 million |
| Validity Period | 12 months |
| Service Fee Obligation | BirIaNu International GmbH agrees to pay a service fee of 0.53% per annum on the total outstanding liability amount. |
BIRLANU Stock Price Movement
BirlaNu Limited shares are edging higher to ₹1355 as of 2:28 PM, after gaining ₹13.80 or 1.03% in live trading. The stock movement is characterized by a total traded volume of 4,041 shares and maintains a robust intraday range.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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