HSBC Issues $1.75B Subordinated Notes Due 2035
Ticker: HBCYF · Form: 6-K · Filed: Nov 18, 2024 · CIK: 1089113
Sentiment: neutral
Topics: debt-issuance, capital-raise, notes, financial-instruments
TL;DR
HSBC just dropped $1.75B in new debt, due 2035. NYSE listing coming.
AI Summary
On November 18, 2024, HSBC Holdings plc announced the issuance of US$1,750,000,000 in subordinated unsecured notes. These notes carry a fixed-to-floating interest rate of 5.874% and are due in 2035. The issuance was made under an indenture dated March 12, 2014, with the most recent amendment being the 9th supplemental indenture dated November 18, 2024. HSBC plans to list these notes on the New York Stock Exchange.
Why It Matters
This issuance represents a significant capital raise for HSBC, potentially strengthening its balance sheet and regulatory capital ratios, which could impact its financial stability and lending capacity.
Risk Assessment
Risk Level: medium — Issuing subordinated debt increases leverage and financial risk for the company, though it can also be a strategic move to bolster capital.
Key Numbers
- US$1.75B — Notes Issued (This is the principal amount of subordinated unsecured notes HSBC Holdings plc has issued.)
- 5.874% — Interest Rate (This is the fixed-to-floating interest rate on the newly issued notes.)
- 2035 — Maturity Date (This is the year the subordinated unsecured notes are due.)
Key Players & Entities
- HSBC Holdings plc (company) — Issuer of the notes
- US$1,750,000,000 (dollar_amount) — Principal amount of notes issued
- 5.874% (dollar_amount) — Interest rate on the notes
- 2035 (date) — Maturity year of the notes
- 12 March 2014 (date) — Original indenture date
- 18 November 2024 (date) — Date of 9th supplemental indenture and issuance
- New York Stock Exchange (company) — Planned listing venue for the notes
FAQ
What is the total principal amount of the subordinated unsecured notes issued by HSBC Holdings plc?
HSBC Holdings plc has issued US$1,750,000,000 in subordinated unsecured notes.
What is the interest rate and maturity date of these new notes?
The notes carry a 5.874% Fixed Rate/Floating Rate and are due in 2035.
Under which indenture were these notes issued?
The notes were issued pursuant to an indenture dated 12 March 2014, as most recently amended by a 9th supplemental indenture dated 18 November 2024.
Where does HSBC Holdings plc plan to list these newly issued notes?
Application will be made to list the Notes on the New York Stock Exchange.
What type of notes were issued by HSBC Holdings plc?
HSBC Holdings plc issued subordinated unsecured notes.
Filing Stats: 555 words · 2 min read · ~2 pages · Grade level 14.7 · Accepted 2024-11-18 12:42:20
Key Financial Figures
- $1,750,000,000 — HSBC Holdings plc has today issued US$1,750,000,000 5.874% Fixed Rate/Floating Rate Su
- $3,099b — tries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of t
Filing Documents
- a6741m.htm (6-K) — 21KB
- 0001654954-24-014589.txt ( ) — 22KB
From the Filing
OF SUBORDINATED UNSECURED NOTES a6741m FORM 6-K   SECURITIES AND EXCHANGE COMMISSION   Washington, D.C. 20549       Report of Foreign Private Issuer   Pursuant to Rule 13a - 16 or 15d - 16 of   the Securities Exchange Act of 1934       For the month of November   HSBC Holdings plc   42nd Floor, 8 Canada Square, London E14 5HQ, England   (Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F).   Form 20-F X Form 40-F             18 November   2024   HSBC HOLDINGS PLC ISSUANCE OF SUBORDINATED UNSECURED NOTES   HSBC Holdings plc has today issued US$1,750,000,000 5.874% Fixed Rate/Floating Rate Subordinated Unsecured Notes due 2035 (the ' Notes ') pursuant to an indenture dated 12 March 2014 (as amended and supplemented from time to time and as most recently amended and supplemented by a 9 th  supplemental indenture dated 18 November 2024).   Application will be made to list the Notes on the New York Stock Exchange.   ends/more   Investor enquiries to: Greg Case                               +44 (0) 20 7992 3825              investorrelations@hsbc.com   Media enquiries to: Press Office                            +44 (0) 20 7991 8096              pressoffice@hsbc.com     Disclaimers   The offering was made pursuant to an effective shelf registration Commission (the 'SEC'). The offering was made solely by means of a prospectus supplement and an accompanying prospectus, which have been filed with the SEC. You may obtain these documents for free by visiting EDGAR on the SEC website at www.sec.gov or by writing or telephoning us at either of the following addresses:    Group Company Secretary HSBC Holdings plc 8 Canada Square London E14 5HQ United Kingdom Tel: +44 20 7991 8888   HSBC Holdings plc c/o HSBC Bank USA, National Association 66 Hudson Boulevard East New York, New York, 10001 Attn: Company Secretary Tel: +1 212 525 5000   The distribution of this announcement in certain jurisdictions may be restricted by law. Persons into whose possession this announcement comes are required to inform themselves about and to observe any such restrictions.   This announcement does not constitute an offer or an invitation to subscribe or purchase any of the Notes. No action has been taken in any jurisdiction to permit a public offering of the Notes where such action is required other than in the US. The offer and sale of the Notes may be restricted by law in certain jurisdictions.       For and on behalf of HSBC Holdings plc Aileen Taylor Company Secretary   Note to editors:   HSBC Holdings plc HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 60 countries and territories. With assets of US$3,099bn at 30 September 2024, HSBC is one of the world's largest banking and financial services organisations.     ends/all           SIGNATURE   Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.       HSBC Holdings plc       By:   Name: Aileen Taylor   Title: Group Company Secretary and Chief Governance Officer       Date: 18 November 2024