CRRC subsidiary guarantees loan for Brazilian rail project

CRRC Corporation Limited (CRRC) has announced that its wholly-owned subsidiary, CRRC (Hong Kong) Co., Ltd., will provide a financing guarantee totaling approximately RMB 339 million to TIC TRENS S.A., a joint venture with Comporte Participações S.A. The guarantee supports a bridge loan for the São Paulo State Intercity Railway North Axis PPP project in Brazil.

The guarantee includes RMB 181 million for an RMB bridge loan from the Industrial and Commercial Bank of China and approximately BRL 120 million for a BRL bond issuance. The Hong Kong Company's guarantee is proportional to its 40% equity stake in the Brazilian Project Company, with Comporte Participações S.A. covering its 60% share. The total outstanding guarantee amount is BRL 282.5 million, with a term not exceeding 18 months, and no counter-guarantee is involved.

As of the announcement date, CRRC and its subsidiaries' total external guarantees amount to RMB 58.906 billion, representing 34.90% of the company's net assets as of December 31, 2024. The board of directors approved this guarantee, noting that the Hong Kong Company has implemented measures to mitigate risk.