Ventive Hospitality’s board has approved a corporate guarantee to secure a USD 36 million credit facility for its subsidiary, Kudakurathu Island Resorts Private Limited. The guarantee includes an immediate USD 12 million and a further USD 27.6 million, subject to shareholder approval. This move supports the subsidiary’s financial needs and ongoing projects.
Corporate Guarantee Approval
The Board of Directors at Ventive Hospitality Limited has approved the proposal to provide a corporate guarantee for credit facilities extended to its subsidiary, Kudakurathu Island Resorts Private Limited. The credit facilities, sanctioned by ICICI Bank Limited, amount to USD 36,000,000. The board meeting, where this decision was made, took place on December 23, 2025.
Guarantee Details
The corporate guarantee will not exceed USD 39,600,000 and is comprised of two parts:
Subsidiary Information
Kudakurathu Island Resorts Private Limited, the beneficiary of this corporate guarantee, is a subsidiary of Ventive Hospitality Limited. The transaction is conducted at arm’s length.
Guarantee Terms
The interest rate for the credit facility is set at 3 Month SOFR + 240 bps, with the margin remaining constant throughout the facility’s tenure. The facility has a term of 7 years from the initial disbursement date. There will be no immediate impact on Ventive Hospitality except in the event of Kudakurathu Island Resort Private Limited’s inability to meet its repayment obligations, at which point the guarantee would become a liability for the company.
Source: BSE