HSBC 2001 Annual Report Download - page 213

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At 31 December 2001, the other HSBC subordinated borrowings were as follows:
2001 2000
US$m US$m
US$1,200m Primary capital subordinated undated floating rate notes................... 1,200 1,200
US$750m Undated floating rate primary capital notes........................................ 750 750
US$500m Undated floating rate primary capital notes........................................ 500 500
US$500m 7.625% subordinated notes 2006........................................................ 500 500
£300m 6.5% subordinated notes 2023............................................................ 432 448
US$400m 8.625% subordinated notes 2004........................................................ 400 400
HK$3,000m Subordinated collared (7% to 9%) floating rate notes 2003............... 385 385
US$375m Subordinated step-up coupon floating rate notes 20091..................... 375 375
£250m Subordinated unsecured floating rate notes 2001...............................
–
373
US$350m 7.4% subordinated guaranteed notes 2003 ......................................... 350 350
£225m 6.25% subordinated notes 20412........................................................ 323 224
US$300m Undated floating rate primary capital notes (Series 3) ....................... 300 300
US$300m 6.95% subordinated notes 2011.......................................................... 300 300
US$300m 7.65% subordinated notes 2025.......................................................... 300 300
US$300m 7% subordinated notes 2006............................................................... 299 298
£200m 9% subordinated notes 2005............................................................... 290 298
US$250m 7.25% subordinated notes 2002.......................................................... 250 249
US$250m 5.875% subordinated notes 2008........................................................ 226 223
£150m 9.25% step-up undated subordinated notes3....................................... 217 224
£150m 8.625% step-up undated subordinated notes4..................................... 217 224
£150m Subordinated step-up coupon floating rate notes 20071..................... 217 224
US$250m 7.20% subordinated debentures 2097................................................. 215 214
BRL472m Subordinated debentures 20085.......................................................... 204
–
US$200m 6.625% subordinated notes 2009........................................................ 200 200
US$200m 7.808% capital securities 2026........................................................... 200 200
US$200m 8.38% capital securities 2027............................................................. 200 200
Other subordinated liabilities less than US$200m ..................................................... 3,810 4,403
12,660 13,362
1The interest margins on the Subordinated Step-up coupon floating rate notes 2007 and 2009 increase by 0.5 per cent five years prior
to their maturity dates. These notes are then repayable at the option of the borrower, subject to the prior consent of the Financial
Services Authority.
2A further issue of £75 million was made during the year. The proceeds from the issue of new notes by HSBC Bank plc were used to
support development of HSBC Bank plc’s capital base.
3The interest rate on the 9.25 per cent Step-up Undated Subordinated Notes changes in December 2006 to become, for each
successive five year period, the rate per annum which is the sum of the yield on the then five year benchmark UK gilt plus 2.15 per
cent. The notes are then repayable at the option of the borrower, subject to the prior consent of the Financial Services Authority.
4The interest rate on the 8.625 per cent Step-up Undated Subordinated Notes changes in December 2007 to become, for each
successive five year period, the rate per annum which is the sum of the yield on the then five year benchmark UK gilt plus 1.87 per
cent. The notes are then repayable at the option of the borrower, subject to the prior consent of the Financial Services Authority.
5The proceeds from the issue of new notes by HSBC S. Paulo Leasing Arrendamento Mercantil (Brasil) S.A. were used to support the
development of the capital base of HSBC in Brazil.
Subordinated loan capital is repayable at par on maturity, but some is repayable prior to maturity at the option of the
borrower, generally with the consent of the Financial Services Authority, in certain cases at a premium over par.
Interest rates on the floating rate loan capital are related to interbank offered rates. On the remaining subordinated
loan capital, interest is payable at fixed rates up to 14%.