Keepwell Agreement

Keepwell Agreement

An agreement between a parent company and a subsidiary in which the parent company provides a guarantee on the subsidiary's debt for the duration of the agreement. The keepwell agreement reduces the risk to the subsidiary's debt securities and may be beneficial for its stockholders.
References in periodicals archive ?
The notes are unconditionally and irrevocably guaranteed by Hengli (Hong Kong) Real Estate Limited, a wholly owned subsidiary of Poly, and they benefit from a keepwell agreement provided by Poly.
reasons and also provides a Keepwell Agreement for CPF HK.
Nikko Cordial Securities has a keepwell agreement entered into with Sumitomo Mitsui Banking Corp.
A keepwell agreement is a contract between a parent company and a subsidiary to maintain solvency and financial backing throughout the term set in the agreement.
Allianz SE provides explicit support to Allianz Global Corporate & Specialty, North America in the form of a quota share reinsurance agreement, as well as a keepwell agreement.
3) The presence of a Keepwell Agreement, which covers CPF HK's general
Besides the company, issuers under this joint euro medium-term note programme are also NS Finance Inc and Nippon Steel International Finance (Netherlands) BV, which have a keepwell agreement with the company.
PEPCO is PCI's current parent and the relationship between the two companies is governed by a keepwell agreement.
The Joint Euro MTN Programme originally set up by Nippon Oil's overseas affiliates has been turned into the Joint Euro MTN Programme based on the keepwell agreement with JX Nippon Oil & Energy Corp (a surviving operating subsidiary formerly named Nippon Oil).
commercial paper based on a keepwell agreement between TAH and its parent company, Takeda Chemical Industries Ltd.
Although a Keepwell Agreement exists between Heller and Fuji, Fitch views Heller as a standalone credit.
commercial paper benefits from a keepwell agreement provided by its parent, Mitsubishi Corporation (MC), and is fully backed by unused committed and uncommitted bank credit facilities as well as MIC's own substantial liquid assets.