10th Dec 2020 09:34
(Alliance News) - HSBC Holdings PLC on Thursday said it is planning an offering of additional tier 1 securities to fund the redemption of US dollar preference shares.
The proposed offering, subject to market conditions, is of a series of US dollar-denominated perpetual subordinated contingent convertible securities.
Should this offering be successfully priced, expected to occur later on Thursday, the Asia-focused lender plans to exercise its right to redeem all 1.5 million of its 6.20% non-cumulative dollar preference shares, series A, represented by American depositary shares, series A.
The redemption price will be USD1,000 per preference share and USD25 per ADS, plus accrued and unpaid dividends.
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 Securities USA Inc is sole structuring adviser and book-running underwriter for the offering.
By Anna Farley; [email protected]
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