Sterling and Wilson Renewable Energy Limited has issued a Parent Company Guarantee (PCG) to ABSA Bank Limited for USD 31 million (approximately INR 293.04 Crore). This guarantee secures a non-fund-based working capital facility for its step-down subsidiary, Sterling and Wilson Engineering (Pty) Ltd., operating solar power projects in South Africa. The PCG is an arm’s length transaction and constitutes a contingent liability for the listed entity, valid for up to six years.
Disclosure of Parent Company Guarantee Issuance
In compliance with disclosure requirements, Sterling and Wilson Renewable Energy Limited formally announced the issuance of a Parent Company Guarantee (PCG) on March 30, 2026. This action was taken pursuant to disclosures required under relevant listing regulations.
Key Transaction Details
The PCG was provided to ABSA Bank Limited, acting as the Lender. The principal amount covered by the guarantee facility is USD 31 million, which translates to approximately INR 293.04 Crore.
Beneficiary and Purpose
The guarantee is specifically issued to support the Guarantees facility (a Non-fund based working capital facility) availed by Sterling and Wilson Engineering (Pty) Ltd., which is identified as a step-down subsidiary of the Company. This facility is intended to support solar power projects located in South Africa.
Transaction Integrity and Terms
- Interest Alignment: It was confirmed that the promoter or promoter group companies have no interest in this specific transaction.
- Arm’s Length Basis: The PCG was established on an arm’s length basis between the parties involved.
- Validity Period: The PCG is stipulated to remain valid for up to 6 (six) years from the date of its issuance.
Impact on the Listed Entity
The issuance of this PCG is classified as creating a contingent liability for Sterling and Wilson Renewable Energy Limited. The Company requests that this information be taken on record for public disclosure.
The disclosure was digitally signed by Ajit Pratap Singh, Chief Financial Officer, representing Sterling and Wilson Renewable Energy Limited.
Source: BSE
