Financial Products Guarantee Business
Financial product guarantee business refers to the credit guarantee or credit enhancement service provided by Yuexiu Guarantee to the purchaser or investor of financial products in the process of fund raising by the principal in the issuance, sale and trading of financial products, and the corresponding performance responsibility in accordance with the bond/guarantee contract in the event that the principal fails to fulfill the relevant obligations agreed in the financial products. The main products are private placement convertible bond guarantees.
Private placement convertible bond guarantee refers to the financing guarantee business that Yuexiu Guarantee guarantees the issuance of private placement convertible bonds by bond issuers meeting the entry requirements on the equity exchange, with the joint and several liability guarantee provided by enterprises with internal rating of AA and above as the counter-guarantee measure, and the performance guarantee for the payment of principal and interest on the convertible bonds of the bond issuers.
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