News ArticleSamvardhana Motherson International Issues Corporate Guarantee for EUR 75 Million Loan Facility to Subsidiary
The guarantee covers up to EUR 78.75 million and remains effective through February 28, 2032, with no impact on consolidated financials
Samvardhana Motherson International Limited has agreed to issue a corporate guarantee for a EUR 75 million term loan facility availed by its wholly owned subsidiary Motherson Global Investments B.V. The guarantee covers up to 105% of the loan amount and remains valid until February 28, 2032, with no impact on the parent company's consolidated financial statements.
Samvardhana Motherson International Limited
Corporate Action
Samvardhana Motherson International Limited has agreed to provide a corporate guarantee for a EUR 75 million term loan facility taken by its wholly owned subsidiary, Motherson Global Investments B.V., securing the loan with BNP Paribas.
The term loan agreement between the subsidiary and BNP Paribas was executed on October 29, 2026, for an aggregate loan amount of EUR 75,000,000. The parent company will issue a corporate guarantee to the bank, effective within six months from the first tranche disbursement upon fulfilling predefined conditions.
The maximum potential liability under this guarantee is capped at 105% of the loan amount, equating to EUR 78,750,000. The guarantee is valid until February 28, 2032, aligning with the terms of the loan facility agreement.
This corporate guarantee arrangement does not impact the consolidated financial statements of Samvardhana Motherson International Limited, as the loan is availed by its wholly owned subsidiary.
Highlights
- Corporate guarantee issued by Samvardhana Motherson International for EUR 75 million loan facility.
- Guarantee liability capped at EUR 78.75 million, 105% of the loan amount.
- Guarantee effective within 6 months after first loan tranche disbursement.
- Guarantee validity extends through February 28, 2032.
- Loan facility entered with BNP Paribas on October 29, 2026.
- No impact on the parent company’s consolidated financials.
Key Data Snapshot
What happened
- Samvardhana Motherson International Limited agreed to provide a corporate guarantee for a term loan facility taken by its wholly owned subsidiary, Motherson Global Investments B.V.
- The loan facility amount is EUR 75 million, and the guarantee covers this facility via an agreement with BNP Paribas dated October 29, 2026.
Key details
- The guarantee will become effective within six months after the first tranche of the loan is disbursed, subject to agreed conditions.
- The maximum liability under the guarantee is capped at 105% of the loan amount, i.e., EUR 78.75 million.
- The guarantee will remain valid until February 28, 2032.
Business impact
- The issuance of the corporate guarantee has no impact on the consolidated financial statements of the parent company because the loan is availed by its wholly owned subsidiary.
- There is no promoter or promoter group interest involved in this transaction.
Regulatory and governance context
- The announcement complies with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, under Regulation 30 and SEBI Master Circular dated January 30, 2026.
- Disclosures include the nature of guarantee, amount, terms and conditions, and related party interest information.
Highlights
- Corporate guarantee issued by Samvardhana Motherson International for EUR 75 million loan facility.
- Guarantee liability capped at EUR 78.75 million, 105% of the loan amount.
- Guarantee effective within 6 months after first loan tranche disbursement.
- Guarantee validity extends through February 28, 2032.
- Loan facility entered with BNP Paribas on October 29, 2026.
- No impact on the parent company’s consolidated financials.
Disclosures
- SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015
- SEBI Master Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 dated January 30, 2026.
No promoter/promoter group interest involved in the transaction.
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