HSBC has announced the allocation policy for its €25 million bond issue, which was over-subscribed within an hour of opening of subscriptions.

HSBC has exercised the over-allotment option of a further €5 million, bringing the total bond issue to €30 million.

Bank CEO Alan Richards said the company received over 2,800 applications, for a total value exceeding €53 million. 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 and the remaining amount was scaled down to 15.933 per cent. The allocation was rounded down to the nearest €100.

Mr Richards said that both globally and in Malta, HSBC is "extremely well placed in these very challenging times with strong capital and liquidity positions". Overall, he added, 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, Mr Richards said.

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

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