Intercompany loan

Intercompany loan

Loan made by one unit of a corporation to another unit of the same corporation.

Intercompany Loan

A loan in which both the lender and the borrower are divisions of the same corporation. Such a loan may have tax consequences, depending on the jurisdiction.
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The Norwegian Krone weakened by 8 percent against the Euro and US Dollar during the third quarter of 2015 resulting in a foreign currency exchange loss on a Norwegian Krone denominated intercompany loan balance with a subsidiary using a functional currency of the Euro and on settled foreign currency hedges.
The implementation of this movement of funds is conducted through an intercompany loan," said Joe Ng, Asia Pacific head of Renminbi payments product management for Global Transaction Banking at Deutsche Bank.
The rating agency also added that the financial strength rating for National Public Finance Guarantee Corp, which was raised to BBB from BB, reflects "the company's strengthened capital adequacy position and financial risk profile following MBIA Corp's repayment of the intercompany loan.
TTM anticipates the transaction will generate approximately $84 million net, and expects to use about $40 million of the proceeds to repay an intercompany loan to SYE.
1502-13(g)(7)(ii), Example (1), interest payments made on an intercompany loan are treated as interest income to the lender and interest expense to the borrower on a separate company basis.
Money was then paid into Intellectual Property UK Ltd from Greenfield Internatonal Ltd as an intercompany loan.
The ECJ decision in EDM (2) clearly states that the grant of an intercompany loan is of an auxiliary nature and is not part of the taxpayer's primary business activity.
In one of the largest deals ever in the French food sector, TLC sold the operation to Groupe Casino, a major French food retailer, for $573 million, which included reimbursement for an intercompany loan of roughly $115 million.
Including a USD370 million deeply subordinated intercompany loan from EEB, leverage would be approximately 4.
Mainly due to the fact that in the period payments on intercompany loans of non-financial sector enterprises were higher than intercompany loan disbursements, for the remaining countries ("Other") the net direct investment flow in the country was negative, amounting to EUR 28.
5million for the repayment of an intercompany loan.
2 billion in 1996, agreed to sell its mammoth food distribution business to Groupe Casino, a major French food retailer, for $573 million, which includes the reimbursement of an intercompany loan for roughly $ 115 million.