11th Dec 2020 09:34
(Alliance News) - HSBC Holdings PLC on Friday said it has given notice of redemption and cancellation of 1.5 million US dollar preference shares.
The London-headquartered banking and financial services firm said it gave notice of redemption and cancellation to Bank of New York Mellon as the holder of 1.5 million 6.20% non-cumulative US dollar preference shares represented by the American depositary shares, issued in December 2002.
The outstanding preference shares will be redeemed at a price per share equal to USD1,000 plus accrued and unpaid dividends.
The ADSs will be redeemed at a price per ADS equal to USD25 plus USD0.124861 in accrued and unpaid dividends.
HSBC additionally announced it will be issuing USD1.50 billion of 4.6000% subordinated contingent convertible securities on Thursday.
The securities are expected to trade on the Global Exchange Market of Irish Stock Exchange PLC, trading as Euronext Dublin within 30 days of the issue date.
The denominations of the securities will be USD200,000 and in multiples of USD1,000 where there is excess.
On Thursday, HSBC said: "The company intends to use the net proceeds from the sale of the securities to redeem the preference shares and the ADSs, in accordance with the terms and conditions of the preference shares and the ADSs. Any of the net proceeds in excess of the redemption amount will be used for general corporate purposes and to further strengthen the company's capital base pursuant to regulatory requirements."
HSBC shares were down 0.6% at 400.55 pence each in London on Friday morning.
By Greg Roxburgh; [email protected]
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