Diageo extends bank guarantee

Diageo Plc, which owns United Spirits, has extended a bank guarantee for a $135-million loan taken by Watson Ltd, a promoter of United Breweries Holdings, by another six months. In its 2014 annual report, Diageo said the term of this facility and the DHN (Diageo Holdings Netherlands B.V.) guarantee were extended on July 22, 2014, for an additional period of six months, with the monetary limits of both the facility and the guarantee remaining unchanged. The extension of the guarantee comes at a time when United Spirits has not declared its first quarter results as ₹1,350 crore given to United Breweries Holdings is under scrutiny.