CITIC Securities subsidiary issues $1.832 bn in notes, faces acquisition-related lawsuit

CITIC Securities' indirect wholly-owned subsidiary, CSI MTN Limited, has issued two tranches of medium-term notes totaling US$1.832 billion under its existing program. This issuance, guaranteed by CITIC Securities International Company Limited (a wholly-owned subsidiary of CITIC Securities), brings CSI MTN Limited's total outstanding notes to US$2.779 billion. The guarantee aims to supplement the group's operating capital.

Separately, CITIC Securities' subsidiary, CITIC Securities Huashan Company Limited (formerly Guangzhou Securities Co., Ltd.), is among 37 defendants in a securities misrepresentation liability lawsuit. The lawsuit, filed by 11 plaintiffs, seeks RMB 1,828,167.34 in damages related to projects undertaken by Guangzhou Securities before its acquisition by CITIC Securities in January 2020. The High People's Court of Hebei Province has upheld the Shijiazhuang Intermediate People's Court's decision to apply ordinary representative action procedures.

CITIC Securities states that potential losses from this lawsuit were fully considered before the acquisition and are not expected to materially impact current or future period profits. The company also confirmed no other significant undisclosed litigations or arbitrations.