HSBC Holdings plc $HSBA (+0,01 %) has successfully issued SGD 800 million of subordinated contingent convertible bonds. The securities with an adjustable interest rate of 5.000% were issued pursuant to the terms set out in an underwriting agreement dated March 20, 2025.
The securities with ISIN XS3023923314 were issued on Monday and are expected to be admitted to the Official List and to trading on the Global Exchange Market of Euronext Dublin. This move is part of HSBC's ongoing efforts to strengthen its capital base.
The issue follows a number of regulatory and legal conditions which have been satisfied or waived pursuant to the underwriting agreement between HSBC and the lead underwriters. HSBC has clarified that these securities are not deposit liabilities and are not covered by any indemnity scheme or insurance provided by any governmental authority in the UK, US or elsewhere.
HSBC's announcement also emphasized that the securities are complex financial instruments and may not be suitable for all investors, particularly retail investors. The company emphasized that the securities have not been registered under the US Securities Act of 1933 and cannot be offered or sold within the United States or to US persons without being exempt from the registration requirements.
The Bank has also taken steps to ensure compliance with regulations, in particular those restricting the offer or sale of such securities to retail clients in the United Kingdom and the European Economic Area (EEA), in accordance with the Financial Conduct Authority's (FCA) Conduct of Business Sourcebook and the PRIIPs Regulation.
This offering is part of HSBC's US$50 billion program for the issuance of perpetual subordinated contingent capital securities as described in the Offering Memorandum and its supplements.
HSBC Holdings plc is headquartered in London and operates in 58 countries and territories, with total assets of US$3,017 billion as at 31 December 2024, making it one of the largest banking and financial services organizations in the world.