A letter of comfort has been issued by the Apollo Hospitals for an aggregate sum of Rs 31.60 crore to Axis Bank regarding sanction of credit facilities to Alliance Dental Care.

Apollo Hospitals Enterprise has said in a BSE filing that “The company has issued a Letter of Comfort for an aggregate sum of Rs 31.60 crore to Axis Bank Ltd in connection with the sanction of credit facilities in favour of its step- down subsidiary, Alliance Dental Care Ltd, Chennai.”

A letter which is issued to a lending institution by a parent company acknowledging support of a subsidiary company’s attempt for financing is a letter of comfort.

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