Huatai Securities subsidiary issues $70m in guaranteed medium-term notes

Huatai Securities Co., Ltd. announced that its indirect wholly-owned subsidiary, Huatai International Financial Company Limited, issued two medium-term notes totaling $70 million under an existing medium-term note program. The notes consist of a $30 million and a $40 million issuance, both guaranteed by Huatai International, a wholly-owned subsidiary of Huatai Securities. This brings the total outstanding guaranteed balance under the program to $717 million, including the latest issuance.

The issuance aims to support business development and supplement working capital needs. Huatai International Financial Company Limited is a special purpose vehicle (SPV) with an asset-liability ratio exceeding 70%, but Huatai Securities maintains 100% control through Huatai International, mitigating the guarantee risk. The company’s board approved the general authorization for overseas debt financing instruments, including guarantees for subsidiaries, initially in 2020 and extended in 2023 until the 2025 annual general meeting.

As of the announcement date, the total external guarantees by Huatai Securities and its controlling subsidiaries amount to 37.25 billion yuan, all for subsidiaries. This represents 19.43% of the company's latest audited net assets. There are no overdue guarantees by the company or its controlling subsidiaries, nor are there any guarantees provided to controlling shareholders or their related parties.