Samvardhana Motherson International Limited has announced to the National Stock Exchange of India Limited and BSE Limited that it has agreed to issue a corporate guarantee for a term facility availed by its indirect wholly owned subsidiary, Motherson Global Investments B.V. The announcement was made on July 09, 2026, in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
The term facility agreement was executed on July 09, 2026, between Motherson Global Investments B.V. and Sumitomo Mitsui Banking Corporation. The facility provides financing of up to EUR 60,000,000, which is Euro Sixty Million, to support the subsidiary's activities.
As per the agreement, Samvardhana Motherson International Limited is required to issue the corporate guarantee in favour of Sumitomo Mitsui Banking Corporation. The guarantee must be made effective within six months from the date of disbursement of the first tranche of the loan under the facility, upon completion of agreed conditions subsequent.
The maximum liability under the corporate guarantee is EUR 63,000,000, which represents 105% of the facility amount. This cap ensures that the guarantee covers the facility amount plus a margin.
The guarantee will remain in force until October 31, 2031, as stipulated in the agreement. The validity period aligns with the term of the facility, providing coverage until the specified date.
Since the term facility is availed by a wholly owned subsidiary, there is no impact on the consolidated financial statements of Samvardhana Motherson International Limited. This disclosure fulfills the regulatory requirements for material corporate events under SEBI guidelines.
Disclaimer: This article is based on company filings submitted to the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE) and is for informational purposes only. It does not constitute investment advice or a recommendation. Investors should conduct their own research and consult a qualified financial advisor before making investment decisions.