By Rebecca Melvin
New York, Sept. 20 – HSBC Holdings plc has priced up to S$750 million 5% perpetual subordinated contingent convertible securities at par, with a rate reset after five years and every five years following at the mid-market swap rate plus 266.5 basis points, according to a filing.
The convertibles are also callable on Sept. 23, 2023 and every five years thereafter.
The conversion price is S$4.86068 per ordinary share for the securities, assuming no conversion price adjustment that can occur in certain events.
The issue is being made subject to the company’s $50 billion program for issuing perpetual subordinated contingent capital securities.
The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch (lead manager), DBS Bank Ltd. and the United Overseas Bank Ltd. are joint lead managers of the deal.
Industrial and Commercial Bank of China Ltd., Singapore Branch and Maybank Kim Eng Securities Pte. Ltd. are co-managers.
The securities will be issued on Sept. 24 to no less than six independent placees.
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: | Up to S$750 million
|
| Maturity: | Perpetual
|
| Lead manager: | The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch
|
| Joint lead managers: | The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch (lead manager), DBS Bank Ltd. and the United Overseas Bank Ltd.
|
| Co-manager: | Industrial and Commercial Bank of China Ltd., Singapore Branch and Maybank Kim Eng Securities Pte. Ltd.
|
| Coupon: | 5%, resettable every five years at mid-market swap rate plus 266.5 bps
|
| Price: | Par
|
| Conversion price: | S$4.86068
|
| Call: | Non-callable until Sept. 23, 2023, then every five years
|
| Settlement date: | Sept. 24
|
| Stock symbol: | Nasdaq: HSBC
|
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