Transaction Details
The Company is issuing a Corporate Guarantee towards the loan to be availed by JSW Cement Middle East L.L.C -SPC, which is a Wholly Owned Subsidiary of JSW Cement Limited.
Purpose of Loan
The loan is being availed for setting up a Cement Grinding Unit (GU) with capacity of 1.65 million tonnes per annum (MTPA) in Fujairah, UAE by JSW Cement Middle East LLC-SPC.
Guarantee Specifications
- Lender: First Abu Dhabi Bank PJSC
- Guarantee Amount: USD 29.24 million (equivalent to AED 107,400,000)
- Nature of Transaction: Arm's length basis (as JSW Cement Middle East L.L.C -SPC is a wholly-owned subsidiary)
Financial Impact Assessment
There is no immediate impact on the Company, except to the extent of the amount for which the corporate guarantee has been provided (USD 29.24 million). This exposure would materialize only in the event JSW Cement Middle East L.L.C -SPC is unable to meet repayment obligations to the bank/institution.