Huatai Securities subsidiary issues $0.8 bn notes, guaranteed by wholly-owned unit

Huatai Securities Co., Ltd. announced that its indirect wholly-owned subsidiary, Huatai International Finance Co., Ltd., has issued $0.80 billion in medium-term notes under its existing medium-term note program. The notes are guaranteed by Huatai International, a wholly-owned subsidiary of Huatai Securities. This issuance increases the total guaranteed amount to $10.24 billion.

The issuance aims to support business development and supplement working capital. Huatai International Finance Co., Ltd. is a special purpose vehicle (SPV) with a 100% equity held indirectly by Huatai Securities. While its asset-liability ratio exceeds 70%, Huatai Securities maintains control, deeming the guarantee risk controllable and not detrimental to shareholder interests.

As of the announcement date, the total external guarantees by Huatai Securities and its controlling subsidiaries amount to 412.64 billion yuan, all provided to subsidiaries. Guarantees to controlling subsidiaries specifically total 339.41 billion yuan, representing 21.53% and 17.71% of the company's latest audited net assets, respectively. There are no overdue guarantees or guarantees to controlling shareholders or related parties.