Business Update7 Dec 2023, 11:24 pm
Reliance Industries Limited Issues Guarantee for Rs. 1750 Crore Term Loan to Alok Industries Limited
AI Summary
Reliance Industries Limited has issued a deed of guarantee in favor of State Bank of India for Rs. 1,750 crore term loan to its joint venture, Alok Industries Limited. This is in addition to a previous guarantee issued for Axis Bank Limited. The aggregate maximum liability of the company under the guarantees is Rs. 3,500 crore plus agreed interest and other monies due and payable by AIL to SBI and Axis Bank.,
Key Highlights
- Reliance Industries Limited issues guarantee for Rs. 1,750 crore term loan to Alok Industries Limited
- The company has issued two guarantees, one for Rs. 1,750 crore to State Bank of India and another for Rs. 1,750 crore to Axis Bank Limited
- The guarantees will remain valid till the end of tenure of respective term loans
- The company will charge guarantee commission on an arm’s length basis on the aforesaid guarantees