Sinotrans guarantees associate's $256.58m Saudi logistics contract

Sinotrans Co., Ltd. announced it will provide a guarantee of $256.58 million for its associate, China Foreign Trade Majdoulieh Company. This guarantee ensures the fulfillment of a logistics service contract for the Al Majdoulieh 600MW Wind Power EPC Project in Saudi Arabia. The contract, valued at approximately $1,710.56 million, covers comprehensive logistics services including transportation, customs clearance, and coordination. The guarantee, representing 15% of the service contract value, will be effective for one year from the contract's fulfillment date.

This guarantee falls within the previously approved annual guarantee forecast for 2025 and was deliberated by the company's Fourth Board of Directors Eighth Meeting and the 2024 Annual General Meeting. As of this announcement, Sinotrans and its controlled subsidiaries' total external guarantees, including this transaction, amount to CNY 60.60 billion.

The guarantee amount represents 14.41% of Sinotrans' latest audited net assets. The company's other shareholder will also provide a proportional guarantee. Sinotrans asserts that due to effective financial and operational oversight and the shared guarantee, the risk is controllable and will not adversely affect the company or its shareholders.