Corporate & Credit Assurance
Parent Company Guarantees
Group strength standing behind a subsidiary's obligations.
What It Is
A Parent Company Guarantee (PCG) is an undertaking, often supported by Amorin's structuring and assessment, in which a parent company guarantees the contractual or financial obligations of its subsidiary. It is commonly required where a subsidiary is newly established, thinly capitalised, or otherwise does not have sufficient standalone financial strength to satisfy a counterparty.
PCGs are frequently requested in construction, energy, and infrastructure projects where the contracting entity is a special purpose vehicle or project subsidiary, and the beneficiary wants recourse to the financial strength of the wider group.
Amorin helps structure and, where required, backstop these arrangements so that group obligations are clearly documented and enforceable, giving beneficiaries confidence in dealing with subsidiary entities.
Who It's For
- Corporate groups contracting through subsidiary or project entities
- Special purpose vehicles undertaking infrastructure or energy projects
- Beneficiaries requiring recourse to group-level financial strength
Key Benefits
- Gives beneficiaries confidence in dealing with subsidiary entities
- Supports project finance and special purpose vehicle structures
- Clearly documents group-level accountability
- Structured to align with the underlying project or contract
How to Apply
Share the group structure
Provide details of the parent and subsidiary entities and the underlying contract.
Assessment
We assess the group's financial standing and the subsidiary's obligations.
Issuance
The parent company guarantee is structured and issued to the beneficiary.
Typical Requirements
- Corporate structure chart and registration documents for both entities
- Parent company financial statements
- Underlying contract between the subsidiary and beneficiary
- Note: requirements vary by transaction complexity
Frequently Asked Questions
Ready to apply for a parent company guarantees?
Share your contract or tender details and receive a structured response within one business day.