By Shankar Ramakrishnan
NEW YORK, Sept 9 (IFR) - HSBC Holdings has started to gaugeinvestor interest on a long-awaited inaugural dollar-denominatedcontingent convertible (CoCo) bond deal on Wednesday.
The trade is coming in the form of two perpetual non-calltranches, one running up to January 2020 and the other September2024. Both bonds are expected to be rated Baa3 by Moody's andTriple B by Fitch.
The 2020s are being shown to investors with initial pricetalk of 5.75%-6%, while the 2024s are out with 6.5-6.75% IPTs.The bonds will convert into equity if the bank's Common EquityTier 1 ratio falls below a 7% trigger.
HSBC is the sole structurer and bookrunner on the wholetrade. Joint lead managers on the 2020 tranche are Commerzbank,Credit Agricole, Danske Bank, ING and Societe Generale while onthe 2024 tranche, the joint lead managers are BNP Paribas,Credit Suisse, RBS, Santander and Wells Fargo.
HSBC is also targeting the euro market.
It has started gathering investor interest for its debuteuro-denominated perpetual non-call eight year AT1 CoCo, at5.5%. Both the euro and the dollar deals are expected to priceon Wednesday. (Reporting by Shankar Ramkrishnan; Editing by Natalie Harrison)