HSBC Bank begins consent solicitation for four series of covered bonds

By Jennifer Chiou

New York, May 31 - HSBC Bank plc announced the start of a consent solicitation for its €1.5 billion of series 1 covered bonds due 2011, £400 million of series 2 covered bonds due 2012, CHF 300 million of series 3 covered bonds due 2017 and ¥10 billion of series 4 covered bonds due 2017.

The issuer is soliciting consents to approve a covered bondholder proposal to, among other things:

• Restructure HSBC's €25 billion global covered bond program to remove Halphen Mortgage Backed Securities plc as a member in the partnership and terminate Halphen's ability to issue residential mortgage-backed securities;

• Remove of Standard & Poor's from the program to effect the removal of the ratings from each series of covered bonds; and

• Appoint Deutsche Trustee Co. Ltd. as the new covered bond trustee and limited liability partnership security trustee following the resignation of Law Debenture Trust Co. of New York.

As part of the restructuring of the bong program, HSBC said that it intends to redeem in full the £14 billion of series 5-11 covered bonds.

A bondholder meeting will take place at 5 a.m. ET on June 22 in London.

Those who deliver consents will be entitled to a fee of 0.05% of the principal amount of bonds submitted under the electronic voting.

The early voting deadline is set for noon ET on June 14.

The solicitation agent is HSBC Bank plc (44 20 7991 5110 or liability.management@hsbcib.com). The tabulation agent is Deutsche Bank AG (44 20 7547 5000 or Xchange.offer@db.com).

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