By Danielle Robinson
NEW YORK, Sept 9 (IFR) - Investors have flooded HSBC withmore than US$11bn of orders for its inaugural Tier 1 contingentconvertible (CoCo) bond, putting it in strong position toincrease the size of the trade in Asia overnight.
According to market sources, the book on Tuesday afternoonwas slightly skewed more toward the perpetual non-call 10-yearCoCo than the perpetual non-call five-year.
Bankers not involved in the deal expect the order book toballoon in Asia, given HSBC's blue-chip brand recognition in theregion.
"They are the perfect name to attract Asia private bankingas well as global asset manager and hedge fund demand," said arival banker. "So they may have a crazy book of interest."
The deal includes dollar and euro denominated AdditionalTier 1 bonds that convert into equity if the bank's CommonEquity Tier 1 ratio falls below 7%.
The non-call fives with a call date in 2020s are being shownto investors with initial price talk of 5.75%-6%, while thenon-call 10s with a call date in 2024.
The deal is expected to price on Wednesday. (Reporting by Danielle Robinson; Editing by Marc Carnegie)
HSBC Holdings (HSBA)