Sterling and Wilson Renewable Energy Issues Parent Company Guarantee for USD 31 Million
Sterling and Wilson Renewable Energy Ltd. has issued a Parent Company Guarantee (PCG) to ABSA Bank Limited for a value of USD 31 million, equivalent to approximately INR 293.04 Crore. The guarantee supports a Guarantees facility for Sterling and Wilson Engineering (Pty) Ltd., a step-down subsidiary, which is utilizing the facility for solar power projects in South Africa.The PCG, valid for six years from the date of issuance, represents a contingent liability for Sterling and Wilson Renewable Energy. The transaction does not involve any interest from the promoter group and was conducted at arm's length.
Details of the Parent Company Guarantee:
| Particulars | Details |
|---|---|
| Name of party for which such guarantees or indemnity or surety was given | Sterling and Wilson Engineering (Pty) Ltd., step-down subsidiary of the Company |
| Promoter/ promoter group/ group companies interest | The promoter/ promoter group are not interested in this transaction. The PCG is issued on behalf of Sterling and Wilson Engineering (Pty) Ltd., step-down subsidiary of the Company and is at arm's length. |
| Details of agreement | PCG to Lender for an amount of USD 31 million (equivalent to approx. INR 293.04 Crore) as security for the Guarantees facility |
| Significant terms and conditions | The PCG shall be valid up to 6 (six) years from date of issuance. |
| Impact on listed entity | The PCG constitutes a contingent liability for the Company. |
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