HSBC (0005), Europe's largest bank, said on Friday it plans to issue US$1.5 billion (HK$11.7 billion) of perpetual subordinated contingent convertible securities to strengthen its capital base and for general corporate purposes.
The securities carry a 7.625 percent coupon and will be issued on November 13, the company said.
The securities would convert automatically into shares if the bank's common equity Tier 1 ratio, a key measure of a bank's financial strength, falls below 7.0 percent.
The bank expects to list the securities on Euronext Dublin's Global Exchange Market within 30 days of issuance.
It said the issue falls under a shareholder-approved mandate, so no further shareholder vote is needed.
HSBC said the coupon is fixed until May 13, 2032, after which it would reset every five years at the five-year US Treasury yield plus 3.004 percent.
Earlier this week, the bank had announced an issuance of US$4.25 billion of senior unsecured notes in two tranches, due 2032 and 2037.
Reuters
