Borosil Renewables Settles ₹99.85 Crore Loan Guarantee for GMB

29 Mar 2025 , 06:25 PM

Borosil Renewables Limited has settled its Standby Letter of Credit (SBLC) with HDFC Bank in order to fulfill its financial commitment of €10.8 million (₹99.85 crore) at the time of registration of the agreement. The payment is due following a prepayment request of its German step-down subsidiary, GMB Glasmanufaktur Brandenburg GmbH (GMB) of its loan.

The SBLC was originally issued by Borosil Renewables to HDFC Bank’s Mumbai branch, and was used to back a €12 million loan that HDFC’s GIFT City branch had given GMB.

Borosil Renewables owns 86% indirect controlling interest in GMB through its 100% owned subsidiary, Geosphere Glassworks GmbH. It follows a similar SBLC settlement in March, when Borosil Renewables paid €10.2 million in an arrangement with HSBC after GMB had cited a weak business outlook.

The HDFC lender raised the SBLC obligation, as GMB once again sought early repayment of the loan. Borosil Renewables deposited funds with HDFC in its cash credit account, which were used subsequently to settle GMB’s loan amount. With the settlement, Borosil Renewables effectively steps into HDFC Bank’s shoes as the lender, and is now the creditor to GMB for the €10.8 million it paid under the SBLC.