HSBC plans €1.5 billion of 5.25% perpetual contingent convertibles

By Jennifer Chiou

New York, Sept. 15 – HSBC Holdings plc announced plans to issue €1.5 billion of 5.25% perpetual subordinated contingent convertible securities on Sept. 17.

According to a filing with the Hong Kong Stock Exchange, the issue will have a minimum denomination of €200,000.

The convertibles will be subject to the terms of the company’s $50 billion program for issuing perpetual subordinated contingent capital securities.

HSBC Bank plc is the lead manager with ABN Amro Bank NV, Banca IMI SpA, Bank of China Ltd., London Branch, Industrial and Commercial Bank of China (Asia) Ltd. and Swedbank AB as joint lead managers.

The securities will be issued at par and will have reset dates on Sept. 16 in 2022, 2027, 2032 and at five yearly intervals thereafter.

Following a capital adequacy trigger, which will occur if HSBC determines that its equity tier 1 capital ratio is below 7% on a valuation date, the securities will be converted into ordinary shares.

The conversion price is €3.37514 per ordinary share.

Application for listing will be made to the Irish Stock Exchange plc’s Global Exchange Market.

Questions may be directed to Nick Turnor (44 20 7992 5501 or nick.turnor@hsbc.com).

HSBC is a London-based financial services company.

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