Huatai Securities guarantees subsidiary's $0.20 bn bond issuance

Huatai Securities Co., Ltd. has announced that its indirect wholly-owned subsidiary, Huatai International Finance Company Limited, will issue $0.20 billion in medium-term notes. This issuance falls under an existing Medium Term Note (MTN) program with a total principal of up to $30 billion, established in October 2020. The MTN program is guaranteed by Huatai International, the company's wholly-owned subsidiary and parent of Huatai International Finance Company Limited.

Following this issuance, the outstanding guaranteed amount under the MTN program will be $12.25 billion (including the current guarantee). The company's total external guarantees, including this transaction, amount to RMB 426.58 billion as of the announcement date, all provided to subsidiaries. Guarantees to controlled subsidiaries total RMB 339.09 billion, representing 22.26% and 17.69% respectively of the company's most recently audited net assets.

The issuance aims to support business development and supplement daily operating capital. Huatai International Finance Company Limited's asset-liability ratio exceeds 70%; however, Huatai Securities retains 100% control through Huatai International, allowing for effective risk management. The guarantee falls within the scope of a general authorization for domestic and overseas debt financing tools approved by the company's board and shareholders.