London, May 2008—Shearman & Sterling advised the underwriters (led by Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Merrill Lynch, Pierce, Fenner and Smith Incorporated, Morgan Stanley & Co. Incorporated and UBS Securities LLC) in connection with HSBC Holdings plc’s issue of $2.2 billion of 8.125% Perpetual Subordinated Capital Securities in the US retail market.

HSBC Holdings plc serves over 128 million customers worldwide in 83 countries and is one of the world’s largest banking and financial services organizations.

Commenting on the deal, Shearman & Sterling capital markets partner Richard Price said, “This transaction highlights Shearman & Sterling’s position as a leading firm in hybrid capital markets securities offerings, having also been involved in recent offerings for Lottomatica, Royal Bank of Scotland and Société Générale.”

The following Shearman & Sterling lawyers in London advised the underwriters: partners Richard Price (Capital Markets) and Peter King (Mergers & Acquisitons), and associates James Benson (Capital Markets), Thomas Day (Tax), Trevor Ingram (Capital Markets), Manan Lahoty (Mergers & Acquisitions) and Carine Stoffels (Tax).