[ET Net News Agency, 20 March 2018] HSBC Holdings (00005) said it intends to issue
US$2,250 million 6.25% Perpetual Subordinated Contingent Convertible Securities (callable
23 March 2023 and every five years thereafter) (or up to US$2,475 million if the
over-allotment option is exercised in full) and US$1,750 million 6.5% Perpetual
Subordinated Contingent Convertible Securities (callable 23 March 2028 and every five
years thereafter) (or up to US$1,925 million if the over-allotment option is exercised in
full).
HSBC intends to offer and sell the securities to no less than six independent placees
(who will be independent individual, corporate and/or institutional investors).
The company intends to use the net proceeds from the sale of the securities for general
corporate purposes and to further strengthen its capital base pursuant to requirements
under CRD IV. The net proceeds from the issuance of the 2023 securities are expected to be
US$2,227.5 million (or up to US$2,450 million if the securities managers' over-allotment
option is exercised in full). The net proceeds from the issuance of the 2028 securities
are expected to be US$1,732.5 million (or up to US$1,906 million if the securities
managers' over-allotment option is exercised in full). (HL)