March 19, 2018 / 2:17 AM / 6 months ago

HSBC markets US dollar AT1 securities in two tranches

HONG KONG, March 19 (IFR) - HSBC Holdings, rated A2/A/AA–, is marketing US dollar-denominated Additional Tier 1 securities to boost its capital ratio.

Initial price thoughts on SEC-registered perpetual non-call five and non-call 10 notes are 6.375 percent area and 6.625 percent area respectively.

The subordinated securities have ratings of Baa3/BBB (Moody’s/Fitch).

The AT1s will automatically convert into HSBC shares if the core equity Tier 1 ratio of HSBC Group falls below 7 percent.

HSBC is sole structurer and sole bookrunner.

The British bank said in its 2017 annual results that it planned to issue $5-$7 billion of AT1 capital this year. (Reporting by Frances Yoon; Editing by Vincent Baby and Daniel Stanton)

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