Key Transaction Details

Parties Involved

  • Guarantor: BirlaNu Limited (formerly HIL Limited)
  • Borrower: BirlaNu International GmbH (formerly HIL International GmbH), Germany (wholly-owned subsidiary)
  • Lender: ICICI Bank UK PLC, Germany Branch

Transaction Summary

BirlaNu Limited has renewed and enhanced the Standby Letter of Credit (SBLC) issued in favor of ICICI Bank UK PLC, Germany Branch. The SBLC amount has been increased from EUR 10.73 million to EUR 20.00 million to secure working capital demand loan facilities availed by its wholly-owned German subsidiary.

Historical Context

  • Initial SBLC of EUR 10.73 million was issued on July 10, 2025, with 12-month validity
  • The SBLC was extended by 3 months on June 6, 2026, increasing overall validity to 15 months
  • Current renewal establishes a new 12-month validity period

Financial Terms

  • Enhanced Guarantee Amount: EUR 20.00 million (previously EUR 10.73 million)
  • Validity Period: 12 months from renewal date (July 22, 2026)
  • Service Fee: BirlaNu International GmbH will pay BirlaNu Limited a service fee at 0.53% per annum on the total outstanding liability amount, calculated pro-rata
  • Additional Costs: BirlaNu International will reimburse all actual processing fees, commissions, and applicable taxes paid by BirlaNu Limited to ICICI Bank India

Security Arrangements

  • Exclusive charge created over property of BirlaNu Limited
  • Security cover of 1.25 times must be maintained during entire tenor of the facility
  • The guarantee is subject to securing regulatory approval(s)

Transaction Relationship

Promoter/promoter group/group companies have no interest in this transaction. The transaction is conducted at arm's length.

Potential Impact

In the event of default by the Borrower, the Bank has the right to invoke the charge created over the assets of Guarantor (BirlaNu Limited). The Guarantor shall, upon demand, pay all amounts demanded by the Bank payable by the Borrower, up to EUR 20.00 million.

Additional Information

The disclosure is also available on the Company's website at www.birlanu.com.