Guotai Junan Holdings, the wholly owned offshore particular function automobile (SPV) of China’s Guotai Haitong Securities, has issued Rmb2.3 billion ($320 million) price of three-year medium-term assured notes, with a hard and fast coupon price of 1.9%.
Proceeds of the bond issuance will probably be used to refinance current debt and for basic company functions, the corporate mentioned. Guotai Haitong Securities acted because the guarantor to the issuance, offering a assured quantity of Rmb2.4 billion.
The notes have been listed on the Hong Kong Inventory Change (HKEX) on August 19.
Guotai Haitong Securities is a merged entity from two of China’s brokerages, Guotai Junan Securities and Haitong Securities. The 2 firms introduced merger plans in September 2024 and formally mixed to type Guotai Haitong Securities in April 2025, making it one among China’s largest securities brokerages.
Through the merger course of, Guotai Junan took over Haitong Securities by way of a share swap over a six-month interval. Guotai Junan issued each A shares and H shares to all shareholders of Haitong in trade for his or her shareholding within the latter. Haitong Securities was subsequently deregistered.
Based on the Shanghai Inventory Change (SSE), the merged entity had complete belongings of Rmb1.7 trillion and internet belongings of Rmb342.9 billion as of the top of 2024.
HKEX-listed Guotai Junan, which modified its identify to Guotai Haitong after the merger, additionally introduced on August 18 that it’s anticipated to lastly full the enterprise mixture on September 12, delaying a beforehand proposed deadline of August 22.
The mixture has primarily concerned an absorption of wealth administration and institutional enterprise from Haitong Securities by the mixed entity. This contains 303 branches of Haitong Securities throughout mainland China changing into a part of Guotai Haitong.
The merger follows China’s State Council’s issuance of A number of Opinions on Strengthening Supervision, Stopping Dangers, and Selling Excessive-High quality Improvement of the Capital Market in April 2024, which highlighted the significance of tightened regulation over securities brokers in China.
Joint international coordinators, joint bookrunners and joint lead managers of the bond issuance embody: Guotai Junan Worldwide, Haitong Worldwide, Customary Chartered Financial institution, ABC Worldwide, Financial institution of China, China CITIC Financial institution, China Minsheng Banking, Hua Xia Financial institution, ICBC, Industrial Financial institution, Shanghai Pudong Improvement Financial institution, and BOSC Worldwide.
The joint bookrunners and joint lead managers are: Financial institution of Communications, China Building Financial institution, China Securities Worldwide, China Retailers Financial institution, Credit score Agricole CIB, HSBC, Orient Securities, Shenwan Hongyuan, and SMBC Nikko.
The issuance is underneath a deliberate issuance programme capped at $3 billion assured by Guotai Haitong. The issuing programme total is predicted to be rated Baa1 by Moody’s.
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