Larsen & Toubro issues parent company guarantees
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Larsen & Toubro issues parent company guarantees

Larsen & Toubro International FZE and Larsen & Toubro Saudi Arabia LLC are wholly owned subsidiaries of the company and the parent company guarantees extended are at arms’ length

  • By ICN Bureau | April 06, 2023

Larsen & Toubro Limited has executed Parent Company Guarantees (PCG) in favour of Air Products Equipment Limited and Air Products Middle East Industrial Gases for Neom Green Hydrogen Projects awarded to Larsen & Toubro International FZE and Larsen & Toubro Saudi Arabia.

Larsen & Toubro International FZE and Larsen & Toubro Saudi Arabia LLC are wholly owned subsidiaries of the company and the parent company guarantees extended are at arms’ length.

The guarantee for the Neom Grid Package is US $669.60 million valid till 31st March, 2027 and guarantee for the Neom Power Elements Package is US $2,665.2 million valid till 31st March, 2028.

The financials of Larsen & Toubro International FZE and Larsen & Toubro Saudi Arabia LLC shall be consolidated and hence there will be no impact on the company. The necessary disclosures shall be made in the financial statements of the company.

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