HSBC Holdings announces potential market stabilization actions

Published 06/05/2025, 08:28
© Reuters.

LONDON - HSBC Holdings (NYSE:HSBC) has indicated that it may engage in stabilization activities for its upcoming securities offering, as announced on Monday. The bank, through its syndication contact, has communicated the possibility of such actions in support of its securities, which are expected to be a fixed-rate offering with a nine-year maturity, commonly referred to as 9NC8.

The stabilization period commenced today and is anticipated to continue until June 6, 2025, with HSBC Bank plc leading the efforts alongside other financial institutions, including ABN Amro, CaixaBank, CIBC (TSX:CM) Capital Markets, Commerzbank (ETR:CBKG), Danske Bank (CSE:DANSKE), and Nordea.

During this time, the Stabilization Manager(s) may over-allot securities or undertake transactions to maintain the market price above levels that might prevail in the open market. These measures, however, are not guaranteed, and the stabilization activities, if initiated, can be discontinued at any time. The specifics of the offer price and the total nominal amount in euros remain to be confirmed.

The announcement also highlights the existence of an over-allotment facility, which could be up to 5% of the aggregate nominal amount of the securities. Any stabilization maneuvers or over-allotment will comply with all applicable laws and regulations.

This pre-stabilization notice serves as a precursor to the formal offering and is not an invitation to underwrite or acquire securities. The offer is directed at qualified investors within the European Economic Area (EEA) as per the Prospectus Regulation and at professional investors and high net worth individuals in the United Kingdom (TADAWUL:4280), in accordance with local regulations.

HSBC Holdings has clarified that this announcement does not constitute an offer of securities for sale in the United States, as the securities have not been registered under the United States Securities Act of 1933 and cannot be offered or sold without registration or an exemption from registration. There will be no public offering of these securities in the United States.

The information provided is based on a press release statement and is intended for informational purposes only, ensuring that interested parties are aware of the potential market stabilization measures that may be undertaken by HSBC Holdings and its Stabilization Manager(s).

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.