(Alliance News) - HSBC Holdings PLC on Wednesday said it has raised USD3.50 billion through issue of new senior notes to fund a tender offer for nine older notes in issue.
The bank said it priced a new issuance of USD2.00 billion 1.645% fixed rate-floating rate senior unsecured notes due 2026 and USD1.50 billion 2.357% fixed rate-floating rate senior unsecured notes due 2031 on Tuesday.
Following the issue of new notes, HSBC has in an aggregate USD3.50 billion to fund a tender offer to buy back nine separate outstanding notes, which was also launched on Tuesday.
The tender offers are worth USD13.35 billion in total.
The series of nine notes will include: 2.7% senior unsecured notes of USD2.50 billion which are due in January 2022; 4.9% senior unsecured notes of USD900.0 million due in January 2022; 4% senior unsecured notes of USD2.00 billion due in March 2022; floating rate senior unsecured notes of USD1.25 billion due in January, 2022 and 3.0% senior unsecured notes of USD2.50 billion due in May 2021.
The other notes include floating rate senior unsecured notes of USD1.00 billion due in March 2021; floating rate senior unsecured notes of USD1.00 billion due in May 2021; 3.4% senior unsecured notes of USD1.16 billion due in March 2021; and 5.1% senior unsecured notes of USD1.03 billion due in April 2021.
HSBC Holdings shares were up 3.6% at 358.45 pence each on Wednesday afternoon in London.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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HSBC Holdings (HSBA)
