HSBC announces results of four 2028 note buybacks after raising cap to $6.75 billion

HSBC Holdings plc said its four cash tender offers for outstanding 2028 senior unsecured notes expired on Aug. 12 with about $4.90 billion accepted for purchase, below the bank's increased $6.75 billion maximum tender amount. All validly tendered notes were accepted without proration except for the May 2028 notes, where tenders exceeded the $1 billion sub-cap and were accepted using a 66.967081% proration factor. HSBC said it accepted $1.4818 billion of September 2028 notes, $973.368 million of November 2028 notes, $1.0 billion of May 2028 notes and $1.4026 billion of March 2028 notes, for total consideration of $4.8978 billion excluding accrued interest. The bank had previously raised the overall tender cap from $5 billion to $6.75 billion and the May 2028 sub-cap from $750 million to $1 billion. Payment for accepted notes is scheduled for Aug. 17, after HSBC said a previously priced $6.75 billion issuance of new 2032 and 2037 senior unsecured notes satisfied the new issue condition tied to the buybacks. Accepted notes will be cancelled and retired.

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