HSBC in TLAC Notes Offering

March 8, 2016

Cleary represented HSBC Holdings in an SEC-registered offering of $7.0 billion senior unsecured notes. The offering, a takedown from HSBC Holdings’ shelf registration statement, closed on March 8, 2016.

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 requirements for global systemically important banks, which will apply to HSBC Holdings once implemented in the United Kingdom.

The first and second tranche of notes will mature in 2021 and 2026, respectively, and bear fixed interest at a rate of 3.400% and 4.300%, respectively. The third tranche of notes will mature in 2026 and bear 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, with an international network of over 4,700 branches in 71 countries and territories 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.