Loan & Debt27 Oct 2026, 02:53 pm
Mazagon Dock to Avail ₹1,250 Cr Credit Facility for SBLC
AI Summary
Mazagon Dock Shipbuilders Ltd's board has approved availing additional credit facilities of ₹1,250 Crore from State Bank of India, Mumbai. This facility is for issuing a Standby Letter of Credit (SBLC) in favor of State Bank of India, Sri Lanka, to support its subsidiary, Colombo Dockyard PLC (CDPLC). CDPLC requires this SBLC to issue bank guarantees to its clients for shipbuilding contracts. The SBLC issuance charges and related costs will be borne by Mazagon Dock but reimbursed by CDPLC with a 10% markup. In case of CDPLC's default on its client obligations, the liability will fall on Mazagon Dock.
Key Highlights
- Board approved ₹1,250 Cr credit facility from SBI.
- Facility is for issuing SBLC to support subsidiary CDPLC.
- SBLC enables CDPLC to provide bank guarantees to clients.
- Mazagon Dock bears costs, reimbursed by subsidiary with markup.
- Potential liability for Mazagon Dock if CDPLC defaults.
Price Impact
More from MAZDOCK