HSBC Holdings (HSBA.L) said on Wednesday it raised $2 billion from a convertible security issue, beating its own target on strong demand for the perpetual additional Tier 1 bond.
In a filing to the Hong Kong Stock Exchange, HSBC said the perpetual bond’s coupon had been set at 8%.
Prospective investors had been told at the deal’s launch on Tuesday that initial price guidance for the coupon was 8.5%. The final rates fluctuate based on demand from investors.
Reuters reported on Tuesday HSBC had aimed to raise up to $1.5 billion in the transaction, but the final size was set higher than its initial target.
HSBC said in a sale memo that it intends to use the cash raised for refinancing some debt, general corporate purposes and strengthening its capital base.
