ISGEC Heavy Engineering Ltd. confirmed the issuance of a Standby Letter of Credit (SBLC) totaling CAD 2 million on March 16, 2026. This SBLC was issued in favor of the Royal Bank of Canada to secure an additional Working Capital Loan facility for its wholly-owned Canadian subsidiary, Eagle Press & Equipment Co. Ltd. This action follows prior board approval given on November 13, 2025, and represents the final step in that approval process.
Confirmation of SBLC Issuance
ISGEC Heavy Engineering Limited provided an update regarding the issuance of a Standby Letter of Credit (SBLC) previously approved by the Board of Directors. This confirmation follows the initial intimation made on November 13, 2025.
Details of the Financial Instrument
The Board had previously approved granting an SBLC not exceeding CAD 2 million (approximately Rs. 13 Crores, as per the prior disclosure) to secure additional Working Capital Loan facilities for its wholly-owned subsidiary, Eagle Press & Equipment Co. Ltd, Canada.
It is hereby submitted that the Company officially issued this Standby Letter of Credit on March 16, 2026. The SBLC was issued in favor of the Royal Bank of Canada, which acts as the banker for the Canadian subsidiary.
Subsidiary and Interest Disclosure
Eagle Press & Equipment Co. Ltd. is confirmed to be the Company’s wholly owned subsidiary. Furthermore, the disclosure confirms that the promoter/promoter group/group companies have no interest in this specific transaction.
Impact and Conclusion
The issuance of this SBLC is intended to help the subsidiary, Eagle Press, draw necessary working capital loans from its bankers to execute expected new orders and manage an increased level of business. The company stated that there are no other changes to the disclosure made earlier, except for the physical issuance of the SBLC.
Source: BSE
