#London #United Kingdom #Tender Offers #Notes #HSBC Holdings

HSBC Holdings plc Announces Tender Offers for Four Series of Notes

HSBC Holdings plc recently made headlines with the anticipated announcement regarding the launch of four separate cash tender offers aimed at purchasing all outstanding notes. Scheduled for September 2, 2025, at 10:00 AM NYC time, these offers will allow noteholders to sell their securities back to the company.

The sizable aggregate principal of the notes currently outstanding amounts to approximately $2.78 billion. The details of the notes under consideration include various series, each with different maturity dates and interest rates. These include the May 2032 Notes, November 2032 Notes, 2036 Notes, and 2038 Notes, alongside their respective CUSIPs and outstanding amounts.

This tender offer signifies HSBC's strategic effort to manage its liabilities, particularly since the notes in question are no longer counted as tier 2 capital instruments under UK regulations. By offering a repurchase, HSBC aims to mitigate the potential risks associated with these instruments, ultimately enhancing its resolvability position.

Each series of notes will be purchased independently, and the company reserves the right to make amendments to the offers as needed. Noteholders who tender their securities by the offer's expiration time will receive cash consideration on the settlement date, projected for September 11, 2025. Accrued interest on the notes will also be included in this payment.

The Offers are part of HSBC’s broader financial strategy and will be funded through available cash reserves. Notably, concurrent with these offers, HSBC plans to initiate a proposed new issuance of subordinated debt securities, though completion of this issuance is not guaranteed.

In preparation for the tender offers, HSBC has enlisted the services of HSBC Bank plc as the Dealer Manager, while Global Bondholder Services Corporation will act as the Information Agent for the process. This structure ensures clear communication and assistance for noteholders seeking to participate in the offers.

Potential investors should please note that these announcements are solely for informational purposes and do not activate any solicitation or offer to purchase. Stakeholders are advised to review all relevant Offer Documents carefully before making any investment decisions.

While this process unfolds, extensive efforts have been made to ensure compliance with applicable laws in various jurisdictions. Special considerations have been applied in markets like Belgium, Italy, and Hong Kong to adhere to local regulations concerning financial promotions and offers.

As the market anticipates these offers, it reflects HSBC's ongoing commitment to prudently manage its capital structure while providing liquidity to investors holding its debt securities. Investors interested in participating are encouraged to reach out to their brokers for guidance on submission timings and offer participation processes, while ensuring they understand the implications of tendering their securities under these offers. This announcement, marking a significant strategic maneuver, exemplifies HSBC's readiness to adapt to the evolving financial landscape and prioritize shareholder value.