Guotai Junan subsidiary to issue HK$3.88 bn exchangeable bonds

Guotai Junan Holdings Limited, an indirectly wholly-owned subsidiary of Guotai Junan Securities, is set to issue HK$3.88 billion in exchangeable bonds on November 10, 2025. This issuance will be guaranteed by Guotai Junan Financial Holdings Company Limited, a wholly-owned subsidiary of Guotai Junan Securities. The guarantee covers the bond principal, interest (if any), and other payment obligations, bringing the total outstanding guaranteed amount to HK$3.88 billion.

The decision was approved by Guotai Junan Securities' board of directors on April 29, 2025, and subsequently by shareholders on May 29, 2025, as part of a general authorization for debt financing instruments. Guotai Junan Holdings Limited, a special purpose vehicle (SPV) established in March 2010 in the British Virgin Islands, will use the proceeds to replace maturing debt. Its asset-liability ratio exceeds 70%, but the parent company maintains 100% control, mitigating risk.

As of the announcement date, Guotai Junan Securities and its subsidiaries’ total external guarantees, including this new issuance, amount to 388.08 billion yuan. This represents 22.72% of the company's most recently audited net assets. Guotai Junan and its domestic and overseas subsidiaries currently have no overdue guarantees.