LONDON, March 24 (Reuters) - HSBC Holdings said itplans to ask its shareholders for permission to sell bonds thatwould convert into shares and bolster its capital if the bankhits trouble, giving it the option to join a growing group ofbanks issuing the securities.
Europe's biggest bank said on Monday it would ask forapproval at its annual shareholder meeting in May to be able toissue bonds that would convert into shares in certaincircumstances, such as if its capital level fell below a certainlevel.
More European banks are issuing the instruments, dubbed"CoCos", as they benefit from new regulatory capital treatmentunder European Union legislation. (Reporting by Steve Slater; Editing by Matt Scuffham)