Huatai Securities subsidiary issues $200m notes with parent guarantee

Huatai International Financial Company Limited, an indirect wholly-owned subsidiary of Huatai Securities, has issued four tranches of medium-term notes under its existing medium-term note program. The total value of these notes is $200 million. Huatai International, a wholly-owned subsidiary of Huatai Securities, is providing an unconditional and irrevocable guarantee for these notes. The current outstanding guaranteed balance, including this new issuance, stands at $1.14 bn.

The issuance, which totals $200 million, is intended to support business development and supplement working capital. Although Huatai International Financial Company Limited's asset-liability ratio exceeds 70%, Huatai Securities maintains 100% control through Huatai International, allowing for close monitoring of its debt repayment capacity. This ensures the guarantee risk remains manageable and does not adversely affect the company or its shareholders.

As of the announcement date, the total external guarantees provided by Huatai Securities and its controlling subsidiaries amount to RMB 42.087 bn, all of which are for its subsidiaries. The total external guarantees represent 21.96% of the company's latest audited net assets.