LONDON, March 24 HSBC Holdings said it
plans to ask its shareholders for permission to sell bonds that
would convert into shares and bolster its capital if the bank
hits trouble, giving it the option to join a growing group of
banks issuing the securities.
Europe's biggest bank said on Monday it would ask for
approval at its annual shareholder meeting in May to be able to
issue bonds that would convert into shares in certain
circumstances, such as if its capital level fell below a certain
More European banks are issuing the instruments, dubbed
"CoCos", as they benefit from new regulatory capital treatment
under European Union legislation.
(Reporting by Steve Slater; Editing by Matt Scuffham)