HSBC Holdings in $3 Billion TLAC Offering

May 31, 2019

Cleary Gottlieb represented HSBC Holdings plc (HSBC Holdings) in a SEC-registered offering of $3 billion senior unsecured notes.

The offering, a takedown from HSBC Holdings’ shelf registration statement, closed on March 22, 2019.

The notes were issued as part of HSBC Holdings’ capital raising efforts to meet the Financial Stability Board final standards for total loss absorbing capacity (TLAC) requirements for global systemically important banks.

The offering consisted of a single tranche of fixed-to-floating rate notes, which will mature in 2030 and is callable from 2029. The notes will bear fixed interest at a rate of 3.973% for 10 years and, thereafter, floating interest based on three-month U.S. dollar LIBOR. The notes are subject to redemption at HSBC Holdings’ discretion upon the occurrence of certain tax events. The notes are listed on the New York Stock Exchange.

HSBC Holdings is one of the largest banking and financial services organizations in the world, serving more than 39 million customers in five geographical regions: Europe, Asia, the Middle East and North Africa, North America, and Latin America. Within these regions, a comprehensive range of banking and related financial services is offered to personal, commercial, corporate, institutional, investment, and private banking clients.