HSBC Holdings is repaying a type of capital issued back in 2000 as it continues to clean up its books of instruments that have been rendered obsolete after the overhaul that followed the global financial crisis.
The lender will be redeeming a US$900 million ($1.15 billion) preferred security issued by HSBC Capital Funding (Dollar 1) L.P., an issuing entity set up in the island of Jersey. It will pay holders the higher of the face value and the value of a make-whole call option, it said in a statement Friday.
In a separate statement, HSBC said it won’t be taking any action on a sterling-denominated subordinated note, issued in 2003.
Over time, the bank “will continue to evaluate its options to further reduce its volume of legacy securities”, it said in the statement. This includes the sterling notes.
