Samvardhana Motherson International Limited has agreed to issue a corporate guarantee for a Term Facility amounting to EUR 75,000,000 (approximately USD 82.6 million) for its indirect wholly-owned subsidiary, Motherson Global Investments B.V. The guarantee is in favour of BNP Paribas and is capped at 105% of the facility amount. This strategic financial commitment is expected to remain in force until February 28, 2032.
Corporate Guarantee for Subsidiary Facility
Samvardhana Motherson International Limited (the “Company”) announced today that it has entered into an agreement to provide a corporate guarantee for a Term Facility. This facility has been availed by Motherson Global Investments B.V. (“MGI B.V.”), an indirect wholly-owned subsidiary of the Company. The agreement was finalized on October 29, 2026.
Facility Details and Guarantee Terms
The Term Facility, provided by BNP Paribas, aggregates up to EUR 75,000,000 (Euro Seventy Five Million only). In accordance with the agreement, the Company will issue a corporate guarantee in favour of the Bank for the Facility availed by MGI B.V. The guarantee is set to become effective within six months from the disbursement date of the first loan tranche, contingent upon the completion of agreed subsequent conditions.
The Company’s potential liability under this guarantee is capped at 105% of the total Facility amount, which translates to a maximum exposure of EUR 78,750,000 (Euro Seventy Eight Million and Seven Hundred and Fifty Thousand only). Furthermore, the guarantee is stipulated to remain in force with a maximum validity extending up to February 28, 2032.
No Impact on Consolidated Financials
Despite the issuance of the corporate guarantee, the Company has stated that there will be no impact on its Consolidated Financial Statements. This is because the Term Facility is being availed by its wholly-owned subsidiary.
Source: BSE
