Sterling and Wilson Renewable Energy Limited has informed the stock exchanges about the issuance of a Parent Company Guarantee (PCG) to support its international business operations. The disclosure was made to both BSE Limited and National Stock Exchange of India Limited as part of regulatory compliance requirements.
According to the filing, the guarantee has been extended on behalf of its step-down subsidiary, Sterling and Wilson Engineering (Pty) Ltd. The PCG has been issued in favor of Nedbank Limited, which is acting as the lender in this arrangement. The guarantee serves as security for an additional non-fund-based working capital facility that the subsidiary has availed.
The total value of the guarantee stands at USD 34 million, which is approximately INR 317 crore. These funds will be used to support solar power projects in South Africa. This move highlights the company’s continued focus on expanding its renewable energy footprint in international markets, particularly in regions with strong solar energy potential.
The company clarified that the Parent Company Guarantee will remain valid until November 11, 2032. From a financial reporting perspective, this guarantee will be treated as a contingent liability. This means that while no immediate cash outflow is involved, the company may be required to meet the obligation if certain conditions arise in the future.
In its disclosure, the company also emphasized that the transaction adheres to proper governance standards. It confirmed that neither the promoter nor the promoter group has any direct or indirect interest in this arrangement. Additionally, the company stated that the guarantee has been issued on an “arm’s length” basis, indicating that the terms are fair and in line with standard market practices.
The filing was made in compliance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. It also aligns with recent circulars issued by SEBI in 2025 and 2026 regarding the disclosure of material events by listed entities.
The notification was signed by Ajit Pratap Singh, Chief Financial Officer of the company. Such disclosures ensure transparency and keep investors and stakeholders informed about key financial commitments and the company’s support for its global subsidiaries.
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