Route Mobile announced on Monday that its board approved providing a Corporate Guarantee worth $10.14 million to Yes Bank for a term loan facility proposed by its wholly-owned subsidiary Route Mobile (UK) Ltd.
The telecom service provider informed the bourses that at the board meeting on April 3, 2023, its Board of Directors agreed to pass the Corporate Guarantee ‘in favour’ of the lender Yes Bank, IFSC Banking Unit.
The guarantee is in favour of a term loan facility of not more than $10.14 million, to be taken up by the borrower Route Mobile (UK), the company said.
“The Company unconditionally and irrevocably covenants to, jointly and severally, repay all obligations with respect to the facilities and duly observe and perform all the terms and conditions of the transaction documents,” the stock exchange filing read.
The company also said that the corporate guarantee will act as a contingent liability for them. A contingent liability is a liability or a potential loss that may occur in the future depending on the outcome of a specific event.
Last month, the second-largest mobile network operator in Bangladesh, Robi Axiata selected Route Mobile for deploying its unified communications as a service (UCaaS) solution for enterprise customers.
Through the deployment, Robi Axiata will be able to open up an additional revenue stream and achieve higher profitability while improving customer experience.
The company posted a 77.26 percent jump in its consolidated net profit during the December quarter to Rs 82.44 crore, compared to Rs 46.51 crore in the year-ago period.
Shares of Route Mobile ended 1 percent lower at Rs 1,352.
(Edited by : Rukmani Krishna)
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