CRRC Hong Kong will provide financing guarantee for the PPP project of the northern axis of the Braz

On the evening of September 9, CRRC issued an announcement announcing that its wholly-owned subsidiary, CRRC (Hong Kong) Co., Ltd. (hereinafter referred to as "CRRC Hong Kong"), will provide financing guarantees for the PPP project of the northern axis of the intercity railway in the state of São Paulo, Brazil (hereinafter referred to as the "Brazil Project"). The guarantee involves RMB bridge loans and real bond issuance, with a total amount equivalent to about RMB 339 million and a term of no more than 18 months.

Brazilian Intercity Project

The PPP project of the northern axis of the Brazilian intercity railway is operated by TIC TRENS S.A. (hereinafter referred to as the "Brazil Project Company"), a project company jointly funded by CRRC and Comporte of Brazil. The project is an important infrastructure construction project in the state of São Paulo, aiming to alleviate traffic congestion in São Paulo and improve the city's rail transit capacity.

Guarantee situation

According to the announcement, CRRC Hong Kong will provide guarantees according to a 40% shareholding ratio, including:

• • RMB Bridge Financing Guarantee: Provided a guarantee of RMB 181 million for a RMB 452 million bridge loan applied by the Brazilian project company to ICBC with an interest rate of 2.95% and a term not exceeding 18 months.
• • Real Bridge Financing Guarantee: Guaranteed R$120 million in reais of 300 million reais bonds issued by Brazilian project companies at an interest rate of DI+2.50% at the Bank of Brazil overnight lending rate for a period of no more than 18 months.

According to the announcement, Comporte, another shareholder of the Brazilian project company, will also provide guarantees according to the shareholding ratio and share risks. In addition, CRRC Hong Kong has taken a variety of measures to prevent guarantee risks and ensure the smooth progress of the project. In the future, the project is expected to become an important strategic layout of CRRC in Brazil and even Latin America, further expanding its international influence.

The announcement mentions the cumulative guarantee

As of September 9, 2025, CRRC and its subsidiaries had a total external guarantee of RMB58.906 billion, accounting for 34.90% of the company's audited net assets at the end of 2024. Among them, the total amount of guarantees provided to subsidiaries was RMB54.210 billion, and the total amount of guarantees provided to controlling shareholders, actual controllers and their affiliates was RMB1.173 billion. The company and its subsidiaries have no overdue guarantees.

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