Carborundum Universal Limited (CUMI) has issued a corporate guarantee in favor of Citibank N.A. for an amount not exceeding RAND 50 million (approximately INR 25.55 Crores). This guarantee supports the working capital facility obtained by CUMI’s subsidiary, Foskor Zirconia Pty Ltd (FZL) in South Africa. The guarantee is valid until September 18, 2026.
Corporate Guarantee Issued
Carborundum Universal Limited (CUMI) has provided a corporate guarantee to Citibank N.A. for its subsidiary, Foskor Zirconia Pty Ltd (FZL), based in South Africa. The guarantee is intended to support FZL’s working capital requirements.
Guarantee Details
The corporate guarantee is capped at RAND 50 million, which is approximately equivalent to INR 25.55 Crores. This financial instrument will enable FZL to maintain and manage its working capital effectively. The guarantee remains valid until September 18, 2026.
Impact and Contingency
In the event of a default by FZL, the bank has the right to invoke the guarantee issued by CUMI. If invoked, the maximum impact would be limited to RAND 50 million. This guarantee will be treated as a contingent liability in the books of the company.
Source: BSE
