By Rebecca Melvin
New York, Sept. 16 – HSBC Holdings plc priced €1.5 billion of perpetual subordinated contingent convertible securities at par to yield initially 5.25% and with a rate reset after eight years and every five years following at the mid-market swap rate plus 438.3 basis points, according to a filing.
The convertibles, with minimum denomination of €200,000, will be non-callable until the first reset date of Sept. 15, 2022.
The conversion price is €3.37514 per ordinary share.
The convertibles will be subject to the terms of the company’s $50 billion program for issuing perpetual subordinated contingent capital securities.
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.
HSBC Bank plc was lead manager of the issue 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 acting as joint lead managers.
Application for listing will be made to the Irish Stock Exchange plc’s Global Exchange Market.
HSBC is a London-based financial services company.
| Issuer: | HSBC Holdings plc
|
| Issue: | Perpetual subordinated contingent convertible securities
|
| Amount: | €1.5 billion
|
| Maturity: | Perpetual
|
| Lead manager: | HSBC Bank plc
|
| Joint lead managers: | ABN Amro Bank NV, Banca IMI SpA, Bank of China Ltd., London Branch, Industrial and Commercial Bank of China (Asia) Ltd. and Swedbank AB
|
| Coupon: | 5.25%, resettable every five years after Sept. 16, 2022 at mid-market swap rate plus 438.3 bps
|
| Price: | Par, €200,000
|
| Conversion price: | €3.37514
|
| Call: | Non-callable until Sept. 16, 2022, then every five years
|
| Pricing date: | Sept. 15
|
| Settlement date: | Sept. 17
|
| Stock symbol: | Nasdaq: HSBC
|
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