Parent company guarantee

This guidance note explains what is a parent company guarantee and the use of parent company guarantees in financing transactions. It also covers key considerations for the lender and the parent company when entering into a parent company guarantee.

This guidance note also outlines important matters for legal practitioners to consider, such as corporate benefit in the context of “downstream” parent company guarantees, and potential tax implications relating to group companies utilising a parent guarantee as a form of credit support for a subsidiary.

See Parent company gurantee.