Mukesh Ambani’s Reliance issues guarantee for RJIL, RINL. Ensures compliance and no adverse impact

Mukesh Ambani-led Reliance Industries Ltd (RIL) has issued guarantees for Reliance Jio Infocomm Limited (RJIL) and Reliance International Limited (RINL), ensuring compliance and no adverse impact. RIL has issued a letter of guarantee of ₹7,706 crore in favour of Samsung India Electronics for extending credit to its subsidiary Reliance Jio for the supply of telecom equipment. 

In an exchange filing dated August 14. RIL informed. “Guarantee issued for RJIL, a subsidiary of the Company - Letter of Guarantee executed by the Company in favour of Samsung India Electronics Private Limited (SIEPL) in consideration of SIEPL extending credit for the supply of LTE equipment or part thereof to RJIL. The maximum liability of the Company under the guarantee is Rs. 7,706 crore. The guarantee issued by the Company is a continuing guarantee until all obligations are fulfilled by RJIL,” 

RJIL is in complete compliance with all its obligations towards SIEPL and Accordingly, the Guarantee does not have any adverse impact on the Company, it added.

The filing further said that Parent Company Guarantee (PCG) issued for RINL, a wholly-owned subsidiary of the Company - PCG executed by the Company in favour of Saudi Arabian Oil Company (Saudi Aramco) in consideration of Saudi Aramco extending credit for crude oil supplied by it to RINL (RINL in turn supplies the same crude oil to the Company). The maximum liability of the Company under the PCG is US$ 750 million. The PCG is valid till February 29, 2024

RINL is in complete compliance with all its obligations towards Saudi Aramco and according, to the PCG does not have any adverse impact on the Company, it added.

In other news, the combined market valuation of seven of the top 10 valued firms declined by ₹74,603.06 crore last week. However, Reliance Industries added ₹25,607.85 crore taking its valuation to ₹17,23,878.59 crore. In the ranking of top-10 firms, Reliance Industries retained the title of the most valued company followed by TCS, HDFC Bank, ICICI Bank, Hindustan Unilever, Infosys, ITC, State Bank of India, Bharti Airtel and Bajaj Finance.