SAMHI Hotels Limited has announced the execution of a Deed of Guarantee and Undertaking in favor of Citibank N.A. to support a loan facility for its wholly-owned subsidiary, SAMHI Hotels (Ahmedabad) Private Limited. The guarantee covers a facility of up to INR 453.10 crore. This strategic move ensures the necessary financial backing for the subsidiary’s operations under the company’s established rupee facilities agreement, with no anticipated negative impact on the parent company.
Financial Support for Subsidiary
SAMHI Hotels Limited has officially authorized a Deed of Guarantee and Undertaking to bolster the financial capacity of its wholly-owned subsidiary, SAMHI Hotels (Ahmedabad) Private Limited. This action is designed to facilitate access to a loan facility totaling INR 453.10 crore provided by Citibank N.A.
Details of the Guarantee
As part of the rupee facilities agreement involving the company, the lenders, and Vistra ITCL (India) Limited acting as the Security Trustee, the parent entity will provide specific undertakings and assurances. The company will guarantee the repayment of all amounts due under these facilities to ensure the subsidiary meets its financial obligations effectively.
Strategic Outlook
The company maintains a 100% ownership stake in the subsidiary. Management has confirmed that this transaction is conducted on an arm’s length basis. Furthermore, the company has clarified that this financial arrangement carries no material impact on the parent entity, underscoring its commitment to operational stability while supporting the growth initiatives of its subsidiary portfolio.
Source: BSE
