Prestige Estates provides corporate guarantee for subsidiary's $10 bn finance facilities

Prestige Estates Projects Limited (PEPL) has issued a corporate guarantee to its wholly owned subsidiary, Prestige Acres Private Limited, for term loan and construction finance facilities. This disclosure is made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The guarantee covers facilities from The Hongkong and Shanghai Banking Corporation Limited, with an amount up to INR 10,000,000,000. PEPL confirmed that neither the promoter nor the promoter group has any interest in this transaction, and the guarantee was provided on an arm’s length basis, complying with the Companies Act, 2013, and SEBI Listing Regulations.

Prestige Estates Projects Limited stated that this corporate guarantee represents a contingent liability for the company, but at this point, there is no direct impact on the listed entity.