Huatai Securities guarantees subsidiary's $230m note issuance

Huatai Securities Co., Ltd. announced a guarantee for its indirect wholly-owned subsidiary, Huatai International Financial Company Limited, relating to the issuance of four medium-term notes under an existing program. The issuance totals $230 million, comprising three tranches of $50 million each and one tranche of $80 million. Following this issuance, Huatai Securities' total guarantee for the subsidiary's outstanding notes under this program will be $1.255 billion.

The guarantees are intended to support the subsidiary's business development and supplement its daily operating capital. Huatai International Financial Company Limited is a special purpose vehicle (SPV) with a high asset-liability ratio, exceeding 70%, but Huatai Securities maintains 100% control through Huatai International, mitigating the risk. As of the announcement date, Huatai Securities' total external guarantees, all for its subsidiaries, amount to 42.904 billion yuan, representing 22.38% of its latest audited net assets. There are no overdue guarantees.