HSBC bond issue allocation policy

HSBC last week announced the allocation policy for its Lm20 million bond issue, offered in both Maltese liri and euro, which was over-subscribed within hours of opening of subscriptions.

The bank exercised the over-allotment option of a further Lm5 million, bringing the total bond issue to Lm25 million.

HSBC chief executive officer Shaun Wallis said the issue was heavily subscribed at both the preplacement stage and the public offer, and subscription had to be scaled down significantly.

Public offer applications up to a value of Lm3,000 on the Maltese lira bond and €5,000 on the euro-denominated bond will be accepted in full. In the case of applications over Lm3,000, the first Lm3,000 will be met in full, and 36.45% of the remaining amount will be met.

For applications over €5,000, the first €5,000 will be met in full, and 26.6% of the remaining amount will be met. The allocation is to be rounded down to the nearest Lm/€100.

"HSBC would like to thank all applicants for their overwhelming support," Mr Wallis said. "The public's response to the bond issue is a clear indication of the confidence HSBC enjoys here in Malta.

"It is also a reflection of the liquidity in the market and wealth of the country. The allocation policy we have adopted ensures a fair distribution of available bonds."

Refunds on the bonds, where applicable, will be made through direct credit into the applicant's bank account. Interest on the bonds began on Friday.

The bonds will be listed on the Malta Stock Exchange on Friday and trading will begin on February 5.