Varun Beverages Limited has enhanced its corporate guarantee for The Beverage Company Proprietary Limited (Bevco), its South African subsidiary, from ZAR 1,500 Million to ZAR 2,970 Million. The enhanced guarantee, valid until July 31, 2031, supports a credit facility extended to Bevco by FirstRand Bank Limited. This move aims to strengthen Bevco’s financial position and facilitate its operations in South Africa.
Corporate Guarantee Enhancement
Varun Beverages Limited announced it has enhanced its corporate guarantee provided to FirstRand Bank Limited for the benefit of its subsidiary, The Beverage Company Proprietary Limited (Bevco) in South Africa. The company aims to ensure the financial stability and continued operations of its key international subsidiary through this action.
Guarantee Details
The corporate guarantee has been increased from ZAR 1,500 Million to ZAR 2,970 Million. This guarantee will be valid until July 31, 2031. The enhanced guarantee is intended to secure a credit facility extended by FirstRand Bank Limited to Bevco, allowing the subsidiary to better manage its financial resources.
Subsidiary Operations
The Beverage Company Proprietary Limited (Bevco) is a vital subsidiary of Varun Beverages Limited, operating within the South African market. The enhancement of the corporate guarantee reflects Varun Beverages’ commitment to supporting its international operations and ensuring their financial strength. The company clarified that the transaction is conducted at arm’s length, and the promoter group has no special interest in it.
Source: BSE
