Carborundum Universal guarantees R50 million for South African subsidiary

Carborundum Universal Limited (CUMI) announced on November 4, 2025, that it has issued a corporate guarantee in favor of Citibank N.A. for its subsidiary, Foskor Zirconia Pty Ltd (FZL), located in South Africa. The guarantee, amounting to R50 million, secures a working capital facility for FZL.

This guarantee, which is valid and will remain in force until September 18, 2026, is classified as a contingent liability in CUMI's books. The transaction involves no promoter or promoter group interest, as the guarantee is provided to a subsidiary company.

In the event of a default by FZL on its repayment obligations, Citibank N.A. can invoke the guarantee, resulting in a potential impact of R50 million on Carborundum Universal Limited.