HSBC announces bond issue allocation policy

HSBC today announced the allocation policy for its €25 million bond issue, which was over-subscribed within one hour of opening of subscriptions. The bank has exercised the over-allotment option of a further €5 million, bringing the total bond issue to €30 million.

HSBC’s CEO Alan Richards said that the company received over 2,800 applications, for a total value exceeding €53million. Subscriptions at both the pre-placement stage and the public offer had to be scaled down accordingly.

Public offer applications up to a value of €4,000 were accepted in full. In the case of applications over €4,000, the first €4,000 were met in full, while the remaining amount was scaled down to 15.933%. The allocation was rounded down to the nearest €100.

Mr Richards thanked all applicants for their overwhelming support. Mr Richards stated that the allocation policy adopted ensures the fairest possible distribution of available bonds.

“HSBC, both globally and in Malta, is extremely well placed in these very challenging times with strong capital and liquidity positions. Overall HSBC has a conservative approach to risk management which underpins the strong HSBC brand. The proceeds from this capital raising will be used to support future growth for HSBC in Malta,” said Mr Richards.

Refunds on the bonds where applicable will be made through direct credit into the applicant’s bank account. Interest on the bonds commences today.