Samvardhana Motherson International Limited Provides Corporate Guarantee for Subsidiary's Credit Facility
Samvardhana Motherson International Limited has issued a corporate guarantee in favour of the lenders associated with a Revolving Credit Facility (RCF) availed by its wholly owned subsidiary, Motherson Global Investments B.V. The guarantee was issued on May 08, 2026.The corporate guarantee serves as security for the facility utilized by MGI B.V. The transaction involves the subsidiary availing an RCF aggregating up to EUR 720,000,000 (Euro Seven Hundred Twenty Million only) from identified lenders.
Samvardhana Motherson International Limited’s potential liability under this new facility is capped at 105% of the facility amount, amounting to EUR 756,000,000 (Euro Seven Hundred Fifty-Six Million only).
The details surrounding the guarantee and the facility arrangements are summarized below:
| Aspect | Details |
|---|---|
| Party Beneficiary | Lenders of the Revolving Credit Facility. |
| Subsidiary Involved | Motherson Global Investments B.V. (MGI B.V.). |
| New Facility Amount | Up to EUR 720,000,000. |
| Company's Potential Liability | Capped at EUR 756,000,000. |
| New Validity Period | The guarantee remains in force up to August 15, 2029. |
The agreement outlines changes to the subsidiary's existing credit arrangements. Specifically, the existing revolving facility of EUR 670,000,000 (Euro Six Hundred Seventy Million only) is set to be cancelled. However, an existing obligation of EUR 737,000,000 (Euro Seven Hundred Thirty-Seven Million only) under the previous facility will remain in force until August 16, 2026, as per the agreement terms.
The company noted that the issuance of the corporate guarantee does not have an impact on the Consolidated Financial Statements of Samvardhana Motherson International Limited, given that the revolving credit facility is availed by its wholly owned subsidiary.
MOTHERSON Stock Price Movement
On Friday, Samvardhana Motherson International Limited shares edged higher to close at ₹132.03, gaining 0.87% from its prior close. The stock settled for the day amidst strong market interest, posting a high total traded volume of 17.36 million shares.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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