Borosil Renewables Limited has honoured a €10.8 million (₹99.85 crore) financial commitment by settling its standby letter of credit (SBLC) with HDFC Bank. The payment was made following a request from its German step-down subsidiary, GMB Glasmanufaktur Brandenburg GmbH (GMB), to prepone its loan repayment schedule.

The SBLC was originally arranged by Borosil Renewables from HDFC Bank’s Mumbai branch as a security measure for a €12 million loan extended to GMB by HDFC’s GIFT City branch. The company indirectly holds an 86% stake in GMB through its wholly owned subsidiary, Geosphere Glassworks GmbH.

This move follows a similar SBLC payment of €10.2 million that Borosil Renewables made in March under an arrangement with The Hongkong and Shanghai Banking Corporation (HSBC), after GMB cited a weak business outlook.

GMB once again requested an early repayment, prompting the HDFC Lender Bank to call upon the company to fulfil its SBLC obligation. As a result, Borosil Renewables funded its cash credit account with HDFC SBLC Lender, which was then utilised to clear the outstanding loan amount on behalf of GMB.

Following the settlement, Borosil Renewables now assumes the role of creditor to GMB for the €10.8 million paid under the SBLC, effectively taking the place of the HDFC Lender Bank in the loan agreement.

Shares of Borosil Renewables closed at ₹482.00, down ₹10.10 or 2.05% from the previous session.