FRANKFURT (Reuters) -Warship maker TKMS has renegotiated terms of project guarantees it gets from parent Thyssenkrupp, according to a prospectus ahead of TKMS’ separate listing, indicating tougher conditions as the business prepares for a stand-alone future.

Thyssenkrupp will spin off 49% of TKMS on October 20, the prospectus published late on Monday said, the latest move in the German conglomerate’s ongoing restructuring efforts that highlight the growing value of defence assets.

Thyssenkrupp, an engineering and steel production group, has issued so-called parent company guarantees worth around 10 billion euros ($11.56 billion) to TKMS, which are key in safeguarding the division’s orders.

So far, Thyssenkrupp had charged a fixed annual fee of 85,000 euros per guarantee provided to TKMS

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