Huatai Securities subsidiary issues $0.80 bn notes guaranteed by another unit

Huatai International Finance Co., Ltd., an indirect wholly-owned subsidiary of Huatai Securities, is set to issue $0.80 billion in medium-term notes under its existing medium-term note program. This issuance will be guaranteed by Huatai International Financial Holdings Co., Ltd., a wholly-owned subsidiary of Huatai Securities. The current outstanding guaranteed amount for Huatai International Finance, including this new issuance, totals $15.20 billion. The guarantee is provided within the previously approved quota.

Huatai International Finance, a special purpose vehicle (SPV) incorporated in the British Virgin Islands, is 100% indirectly owned by Huatai Securities through Huatai International. The proceeds from this issuance will support business development and supplement working capital. Although Huatai International Finance has a debt-to-asset ratio exceeding 70%, Huatai Securities maintains control and oversight, mitigating potential risks associated with the guarantee.

As of the announcement date, Huatai Securities and its controlling subsidiaries' total external guarantees amount to 447.76 billion yuan, with 339.09 billion yuan attributed to guarantees for controlling subsidiaries. These figures represent 23.34% and 17.69% of the company's latest audited net assets, respectively. There are no overdue guarantees or guarantees provided to controlling shareholders, actual controllers, or their affiliates.