(Alliance News) - HSBC Holdings PLC on Friday offered to purchase its EUR2.00 billion in 1.50% notes due March 2022, EUR1.50 billion floating rate notes due September 2022, and EUR1.50 billion in floating rate notes due October 2023 for cash.
For all three note series, the entire amount remains outstanding. The notes due March 2022 are first priority, have a negative 0.45% purchase yield, and will have a purchase price of 102.600% assuming a tender offer settlement date of November 16. If the date is postponed, the purchase price will be recalculated.
The notes due September 2022 and October 2023 are second priority and have a purchase price of 100.58% and 100.61% respectively.
Asia-focused lender HSBC explained that: "The offers are being made as part of the issuer's ongoing management of its liabilities, in this particular instance as the notes shall soon cease to qualify as eligible liabilities items under the CRD regulation once they have a residual maturity of less than 12 months. The issuer intends to continue issuing senior unsecured and subordinated liabilities in all major currency markets."
The EU regulation is of capital requirements for credit institutions and investment firms.
The company said it plans to announce later on Friday its intention to issue new euro-denominated senior unsecured notes.
Shares in HSBC were up 0.6% at 338.10 pence in London on Friday.
By Anna Farley; annafarley@alliancenews.com
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