IT services major Wipro on Thursday said its step-down subsidiary, Wipro IT Services, has approved a proposal for issuing US dollar denominated notes of up to $750 million.
The net proceeds of the notes, which are proposed to be listed on the Singapore Stock Exchange, are intended to be utilised for refinancing existing debt and general corporate purposes, a regulatory filing said.
"...Wipro IT Services, a wholly owned step-down subsidiary of Wipro, incorporated under the laws of Delaware, United States of America (issuer) has approved the proposal for issuance of US dollar denominated notes in an aggregate principal amount of up to $750 million," it added.
The notes will be guaranteed by Wipro vide a corporate guarantee, it said.
The board of directors of the company, at their meeting held on June 9, 2021, granted its approval to "unconditionally and irrevocably" guarantee the due and prompt payment of the principal and interest and any additional amount payable in respect of the notes, as and when the same shall become and payable, Wipro said.
The guarantee is subject to the aggregate liability of the company not exceeding $865 million (115 per cent of the principal amount of the notes), it added.