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LONDON - HSBC Holdings plc (NYSE:HSBC) has successfully issued $2 billion in perpetual subordinated contingent convertible securities, the company announced today. The securities, which carry a 7.050% interest rate, were issued in accordance with the terms set out in the Securities Terms Agreement dated May 29, 2025.
The issuance was completed on Thursday, after meeting all the conditions precedent outlined in the agreement with the underwriters. These securities have been designed to convert into equity under certain conditions, providing an additional buffer to absorb losses and strengthen the bank’s capital base.
Applications for the securities to be listed on the Official List and to trade on the Global Exchange Market of Euronext (EPA:ENX) Dublin have been submitted. The securities, identified by ISIN US404280FA24, are callable during any optional redemption period, offering flexibility to both the issuer and investors.
The offering was conducted under 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 accessible to the public through the SEC’s EDGAR system.
HSBC highlights that these securities are complex financial instruments and may not be suitable for all investors, particularly retail investors. The bank has stressed compliance with regulatory requirements, especially in jurisdictions like the United Kingdom (TADAWUL:4280), where the sale of such securities to retail clients is restricted by the Financial Conduct Authority (FCA).
The issuance is part of HSBC’s ongoing efforts to manage its capital efficiently and to reinforce its position as one of the world’s leading banking and financial services organizations. As of March 31, 2025, HSBC reported assets totaling $3.054 trillion.
This financial move by HSBC Holdings plc is based on a press release statement and does not constitute an offer or an invitation to subscribe or purchase any of the securities. Potential investors are advised to inform themselves about and observe any restrictions that may apply in their jurisdiction.
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