HSBC (0005) plans to issue perpetual subordinated contingent convertible securities of US$2.5 billion (HK$19.5 billion), according to the company’s filing on Wednesday.
The securities comprises US$1.25 billion of 6.75 percent perpetual subordinated contingent convertible securities, and US$1.25 billion of 7 percent perpetual subordinated contingent convertible securities.
The net proceeds are estimated at around US$2.475 billion after expenses, the company said it will be used for general corporate purposes and to maintain or further strengthen its capital base.
HSBC stated that, in the event of an automatic conversion trigger, assuming full conversion of the relevant securities at their initial conversion price of US$3.61 per share, the securities would convert into around 693 million ordinary shares, representing about 3.88 percent of the company's enlarged issued share capital.
Gloria Leung
