Intercompany loan

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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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References in periodicals archive ?
The RCF primarily supports Eversource's $1.45 billion CP program, which the company uses to provide its subsidiaries with intercompany loans.
Minejesa Power has on-lent these funds to Paiton under intercompany loans.
In third quarter 2017, Avolon originated $365 million of intercompany loans to Bohai using cash and available undrawn debt facilities.
There are concerns that the value of some assets included in Northern Powerhouse Development's accounts were inflated and intercompany loans had subsequently gone missing.
Furthermore, cash held by Viking at the date of completion, which totalled GBP72,000, was not included in the sale and has now been transferred to Braveheart and the intercompany loans payable by Braveheart, Strathtay Ventures Ltd.
Tronox Sands holds intercompany loans that Exxaro held prior to the 2012 acquisition of Exxaro's mineral sands business.
30, 2018 the company had a total financial debt of approximately USD2.5 billion (not including intercompany loans) and EBITDA of USD729 million, resulting in a gross leverage of 3.4x.
The Company intends to use the net proceeds from the offering to repay outstanding related party debt and intercompany loans owed to or guaranteed by its parent company BGC Partners, Inc.
Others in the corporate sector - assessing that the outlook or prospects for profits continue to be positive - have also been paying intercompany loans or their loans to their mother companies and thus contributing to the demand for the greenback.
Non-residents' investments in debt instruments issued by their local affiliates, consisting of intercompany loans, amounted to $569 million, 24.6-percent lower than the $756 million recorded in June last year.
Net investments in debt instruments issued by local affiliates consisting of intercompany loans, on the other hand, declined by 16.7 percent to $381 million.
It is also collecting around 5 percent interest on intercompany loans.