Yuexiu Capital plans diversified financing, intercompany loans, and guarantees

Guangzhou Yuexiu Capital Holdings Group announced plans to issue bonds and asset-backed securities totaling up to RMB 350 bn to diversify funding and optimize its capital structure. This includes up to RMB 70 bn in corporate bonds, RMB 60 bn in medium-term notes, and perpetual notes from Guangzhou Asset Management Co. totaling up to RMB 20 bn. Guangzhou Yuexiu Financial Leasing Co. (Yuexiu Leasing) also intends to issue up to RMB 30 bn in corporate bonds and RMB 40 bn in medium-term notes, in addition to RMB 100 bn in asset-backed securities. Shanghai Yuexiu Financial Leasing Co. will issue up to RMB 10 bn in medium-term notes.

The company will provide financial assistance to its subsidiaries, including up to RMB 150 bn in loans to Yuexiu Leasing and up to RMB 150 bn from Guangzhou Yuexiu Capital to Yuexiu Leasing. Yuexiu Leasing will also lend up to RMB 300 bn to Shanghai Yuexiu Leasing. All loans carry an interest rate based on the 1-year LPR + 10%, with repayment terms ranging from one to three years. These transactions are part of a broader strategy that includes an estimated RMB 89.82 bn in routine related-party transactions for 2026.

Yuexiu Capital also projected up to RMB 600 bn in external guarantees for 2026 for its controlled subsidiaries, including RMB 330 bn for Yuexiu Industrial Investment and RMB 270 bn for Guangzhou Futures Capital Management (Shanghai) Co. These guarantees, ranging from 0.2% to 3% of the actual guaranteed amount, aim to support business growth and enhance financing efficiency for the group’s subsidiaries.