IRCON International provides corporate guarantee on behalf of SPV 'IrconSGTL'

29 Mar 2022 , 01:13 PM

Ircon International Limited (IRCON) had furnished a Corporate Guarantee to SBICAP Trustee Company Limited for providing the Term Loan of Rs501 crore by State Bank of India to Ircon Shivpuri Guna Tollway Limited (IrconSGTL), a Special Purpose Vehicle (SPV) & a wholly owned subsidiary of IRCON.

As per the regulatory filing, the Corporate Guarantee is valid till the tenure of the Loan. The Corporate Guarantee is furnished by IRCON at arm’s length basis and its promoters have no interest in the transaction directly. The purpose of availing loan by IrconSGTL is to repay the existing loan of IRCON.

Now, IrconSGTL has refunded the loan of Rs501 crore to Ircon International Limited which has reduced the financial investment of IRCON, said company.

On Tuesday at around 1:15 PM, Ircon International was trading at Rs40.10 apiece down by Rs0.2 or 0.5% on the BSE.