SINGAPORE, June 1 (IFR) - HSBC Holdings is
marketing its first Singapore dollar Additional Tier 1 issue
with yield guidance in the 5 percent area.
The bank is seeking a benchmark size for the Reg S perpetual
non-call five contingent convertible securities.
The notes are junior to all unsubordinated and subordinated
obligations, and will count towards its Tier 1 capital under
Basel III rules. The bonds convert to equity if the issuer’s
common equity Tier 1 ratio falls below 7 percent.
The notes are expected to be rated Baa3/BBB (Moody’s/Fitch)
while the issuer is A1/A/AA-.
Proceeds will be used for general corporate purposes and to
strengthen the issuer’s capital base.
HSBC is sole structurer and sole bookrunner, as well as
joint lead manager with DBS and UOB. ICBC Singapore and Maybank
(Reporting by Kit Yin Boey; Editing by Vincent Baby and Daniel