HSBC Holdings plc $HSBA (+1,45%) has successfully issued US$2 billion of contingent convertible securities, the company announced today. The securities, which carry an interest rate of 7.050%, were issued pursuant to the terms and conditions set out in the securities agreement dated May 29, 2025.
The issuance was completed on Thursday after all conditions precedent set forth in the agreement with the underwriters were satisfied. These securities were designed to be convertible into equity under certain conditions, creating an additional buffer to absorb losses and strengthening the bank's capital base.
Applications have been made to list the securities on the Official List and to trade them on the Global Exchange Market of Euronext Dublin. The securities with ISIN US404280FA24 are callable during any optional redemption period, providing flexibility to both the issuer and investors.
The offering was made pursuant to an effective shelf registration statement filed with the U.S. Securities and Exchange Commission (SEC). The prospectus supplement and accompanying prospectus detailing the offering have been filed with the SEC and are available to the public through the SEC's EDGAR system.
HSBC emphasizes that these securities are complex financial instruments that may not be suitable for all investors, particularly retail investors. The Bank has emphasized compliance with regulatory requirements, particularly in jurisdictions such as the UK where the sale of such securities to retail clients is restricted by the Financial Conduct Authority (FCA).
The issue is part of HSBC's ongoing efforts to manage its capital efficiently and strengthen its position as one of the world's leading banking and financial services companies. As of March 31, 2025, HSBC reported total assets of USD 3.054 trillion.
This financial move by HSBC Holdings plc is based on a press release and does not constitute an offer or invitation to subscribe for or purchase the securities. Potential investors are advised to inform themselves about and observe any restrictions that may apply in their jurisdiction.