Standard Chartered (2888) announced on Friday to issue US$1 billion (HK$7.8 billion) in fixed-rate resetting perpetual subordinated contingent convertible securities on June 8.
The net proceeds amount to US$992 million for general business purposes and to further strengthen the company's regulatory capital base.
The initial fixed rate is 7 percent. If the common equity tier 1 capital ratio falls below 7 percent, a conversion will be triggered. The initial conversion price is set at US$26.379 per share.
In the event of a conversion trigger occurring and assuming securities are fully converted at the initial conversion price, approximately 37.9 million ordinary shares will be issued. This represents about 1.7 percent of the issued ordinary share capital and 1.691 percent of the enlarged issued ordinary share capital.
