Shearman & Sterling represented the underwriters (led by HSBC Securities (USA) Inc.) in connection with HSBC Holdings plc’s contingent convertible securities offering, comprising an offering of US$2.45 billion aggregate principal amount of 6.375% perpetual subordinated contingent convertible securities (callable March 2025 and every five years thereafter). The securities qualify as additional Tier 1 capital instruments under bank regulatory capital rules. This marked the first contingent convertible securities offering by a European bank in the US dollar "Yankee" market so far in 2015.
HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in London. HSBC Group serves customers worldwide from approximately 6,100 offices in 73 countries and territories in Europe, Asia, the Middle East and North Africa, North America and Latin America.
The Shearman & Sterling team of lawyers in the firm's London, Washington, DC, New York and Hong Kong offices included capital markets partner Richard Price and associates Jonathan Handyside and Ana Stefanovic Grbec. Associate Anna Doyle advised on UK financial institutions regulatory aspects of the offering, and partner Kristen Garry, counsel Simon Letherman, and associates Michael Daly and Gabriel Ng advised on US and UK tax aspects of the offering. Partners Russell Sacks and Peter Chen, counsel Vanessa Poon, and associates Jennifer Morton and Jenny Ding also assisted on the transaction.