Huatai Securities guarantees subsidiary's $0.4 bn medium-term note issuance

Huatai Securities Co., Ltd. announced that its indirectly wholly-owned subsidiary, Huatai International Finance Co., Ltd., will issue $0.40 billion in medium-term notes under a program established on October 27, 2020. This issuance will be guaranteed by Huatai International Financial Holdings Co., Ltd., a wholly-owned subsidiary of Huatai Securities. The total outstanding guaranteed amount, including this new issuance, will reach $10.64 billion.

Huatai International Finance, a special purpose vehicle (SPV), has a liability-to-asset ratio exceeding 70%. However, Huatai Securities maintains 100% control over the entity through Huatai International, allowing for close monitoring of its debt repayment capabilities. The company considers the guarantee risk manageable and beneficial for business development and working capital.

As of the disclosure date, the total external guarantees by Huatai Securities and its controlling subsidiaries amount to 415.48 billion yuan, with 339.41 billion yuan specifically for controlling subsidiaries. These figures represent 21.68% and 17.71%, respectively, of the company's latest audited net assets. There are no overdue guarantees or guarantees provided to controlling shareholders, actual controllers, or their related parties.