Samvardhana Motherson International Limited has issued corporate guarantees worth approximately $1.1 billion to support the lenders and creditors of its wholly-owned subsidiaries. The company said this step would help harmonise the security structure and allow its consolidated credit strength to benefit its subsidiaries.

According to a regulatory filing with the BSE and NSE, the guarantees were issued on March 28, 2025, for subsidiaries, including Motherson Global Investments B.V., Samvardhana Motherson Automotive Systems Group B.V., SMP Automotive Systems Alabama Inc., SMR Automotive Systems USA Inc., and SMR Holding Australia Pty Limited. The company’s potential liability under these guarantees is capped between 1.05 and 1.10 times the respective facility amounts, with the longest tenure extending until March 18, 2028.

Samvardhana Motherson clarified that these guarantees would not impact its consolidated financial statements since the loans are availed by its wholly-owned subsidiaries. It also confirmed that no promoter, promoter group, or related company has any involvement in the transaction.

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