By Cristal Cody
Chicago, Aug. 5 – Standard Chartered plc sold $1.25 billion of fixed-rate resetting perpetual subordinated contingent convertible securities (Ba1/BB-/BBB-) on Thursday, according to a market source and a subscription agreement.
The 7¾% fixed rate converts to a rate equivalent to Treasuries plus 497.6 basis points starting Feb. 15, 2028. The rate will reset every five years after the first reset date.
Initial price talk was in the 8 1/8% area.
The notes are redeemable by the company at par starting Aug. 15, 2027 to the first reset date and then on any reset date thereafter.
The structuring adviser is Standard Chartered Bank.
The joint lead managers are Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, SG Americas Securities, LLC and Standard Chartered Bank.
Proceeds will be used for general business purposes, including without limitation to repurchase or refinance existing debt and to strengthen the regulatory capital base of the group.
The notes will be listed on the Hong Kong Stock Exchange.
Standard Chartered is a London-based banking and financial services company with a focus on Asia, Africa and the Middle East.
| Issuer: | Standard Chartered plc
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| Amount: | $1.25 billion
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| Issue: | Fixed-rate resetting perpetual subordinated contingent convertible securities
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| Maturity: | Perpetual
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| Bookrunners: | Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, SG Americas Securities, LLC and Standard Chartered Bank
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| Co-managers: | BMO Capital Markets Corp., CIBC World Markets Corp., Commerzbank AG, Emirates NBD Bank PJSC, First Abu Dhabi Bank PJSC, Lloyds Securities Inc., Scotia Capital (USA) Inc. and United Overseas Bank Ltd.
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| Trustee: | BNY Mellon Corporate Trustee Services ltd.
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| Coupon: | 7¾% starting rate; resets to Treasuries plus 297.6 bps starting Feb. 15, 2028
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| Price: | Par
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| Yield: | 7¾%
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| Call features: | At par starting Aug. 15, 2027 to Feb. 15, 2028; at par on any five-year reset date thereafter
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| Trade date: | Aug. 4
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| Settlement date: | Aug. 15
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| Ratings: | Moody’s: Ba1
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| S&P: BB-
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| Fitch: BBB-
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| Distribution: | Regulation S
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| Price talk: | 8 1/8% area
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| ISINs: | US853254CM07, USG84228FJ22
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