China Risun guarantees $269.6m for joint venture facilities

China Risun Group Limited has entered into a Deed of Guarantee to back obligations of its joint venture, Risun Wei Shan, under a new Facility Agreement. The guarantee, dated December 17, 2025, covers up to $269.6 million, representing 51% of the secured liabilities, reflecting China Risun's indirect equity interest in Risun Wei Shan. This transaction is classified as a discloseable transaction under Chapter 14 of the Listing Rules.

The facilities, totaling $453 million, include a $403 million term loan for refinancing existing debt and a $50 million revolving credit facility for working capital. The new facilities are expected to reduce Risun Wei Shan’s financing costs by 75 basis points annually. Risun Wei Shan, operating a coke production base in Morowali, Indonesia, with a planned capacity of 4.8 million tons per annum, will benefit from the guarantee by securing lower interest rates and enhancing its operational capacity.

The guarantee is provided in proportion to equity interests by the joint venture partners, with Risun Wei Shan being 51% owned by China Risun's subsidiaries and 49% by independent third parties, Dawn International Capital Pte. Ltd. and Zoomwe Hong Kong Energy Trading Co., Limited. PT Bank Mandiri (Persero) Tbk acts as the security agent for the finance parties. The board considers the guarantee terms fair, reasonable, and in the company's best interests.