Huatai Securities guarantees subsidiary's $0.66 bn note issuance

Huatai Securities announced that its indirect wholly-owned subsidiary, Huatai International Financial Holdings Company Limited, issued $0.66 billion in medium-term notes under a program established in 2020. The issuance is guaranteed by Huatai International, a wholly-owned subsidiary of Huatai Securities. This guarantee falls within the previously approved general authorization for debt financing instruments.

The total outstanding guarantee amount provided by Huatai International for its subsidiary, Huatai International Financial Holdings Company Limited, now stands at $13.47 billion, including this latest issuance. The guarantee is deemed necessary and reasonable to support business development and supplement working capital. Despite the borrower's asset-liability ratio exceeding 70%, Huatai Securities maintains 100% control, allowing for effective oversight of its solvency.

As of the announcement date, Huatai Securities' total external guarantees, including those from its holding subsidiaries, amount to 435.21 billion yuan, all provided for its subsidiaries. Of this, guarantees for holding subsidiaries total 339.09 billion yuan, representing 22.71% and 17.69% of the company's latest audited net assets, respectively. There are no overdue guarantees.