HSBC 2008 Annual Report Download - page 58

HSBC HOLDINGS PLC
Report of the Directors: Operating and Financial Review (continued)
Financial summary > Balance sheet > Share capital and reserves / Short-term borrowings > Contractual obligations / Ratios
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the HSBC Holdings Executive Share Option
Scheme. Options over 223,951 ordinary shares
lapsed.
9. 3,734,125 ordinary shares were issued at prices
ranging from £6.9100 to £8.7120 per share in
connection with the exercise of options under
the HSBC Holdings Group Share Option Plan.
Options over 5,889,067 ordinary shares lapsed.
10. No options were exercised under and no
ordinary shares were issued in connection with
the HSBC Share Plan. Options over 224,728
ordinary shares lapsed.
HSBC Finance
11. 65,198 ordinary shares were issued at prices
ranging from US$14.59 to US$16.71 per share
in connection with the vesting of Restricted
Stock Rights under HSBC Finance share plans
that have been converted into rights over HSBC
Holdings ordinary shares.
Authority to purchase ordinary shares
12. At the Annual General Meeting in 2008,
shareholders renewed the authority for the
Company to make market purchases of ordinary
shares. The authority is to make market
purchases of up to 1,186,700,000 ordinary
shares. The Directors have not exercised this
authority. In accordance with the terms of a
waiver granted by the Hong Kong Stock
Exchange on 19 December 2005, HSBC
Holdings will comply with the applicable law
and regulation in the UK in relation to the
holding of any shares in treasury and with the
conditions of the waiver, in connection with
any shares it may hold in treasury.
Authority to allot shares
13. At the Annual General Meeting in 2008
shareholders renewed the general authority for
the Directors to allot new shares. The general
authority is to allot up to 2,373,400,000 ordinary
shares, 10,000,000 non-cumulative preference
shares of £0.01 each, 8,550,000 non-cumulative
preference shares of US$0.01 each and
10,000,000 non-cumulative preference shares
of €0.01 each. Within this, the Directors
have authority to allot up to a maximum of
593,350,000 ordinary shares wholly for cash to
persons other than existing shareholders.
Other than as described in paragraphs 1 to 6 and
8 to 10 above, the Directors did not allot any shares
during 2008.
Short-term borrowings
HSBC includes short-term borrowings within
customer accounts, deposits by banks and debt
securities in issue and does not show short-term
borrowings separately on the balance sheet. Short-
term borrowings are defined by the US Securities
and Exchange Commission (‘SEC’) as Federal funds
purchased and securities sold under agreements to
repurchase, commercial paper and other short-term
borrowings. HSBC’s only significant short-term
borrowings are securities sold under agreements to
repurchase and certain debt securities in issue.
Additional information on these is provided in the
tables below.
2008 2007 2006
US$m US$m US$m
Securities sold under agreements to repurchase
Outstanding at 31 December ........................................................................... 145,180 140,001 97,139
Average amount outstanding during the year ................................................. 177,256 129,779 102,715
Maximum quarter-end balance outstanding during the year .......................... 190,651 148,601 109,689
Weighted average interest rate during the year ............................................... 3.8% 5.4% 4.3%
Weighted average interest rate at the year-end ............................................... 2.9% 4.8% 4.6%
Short-term bonds
Outstanding at 31 December ........................................................................... 40,279 51,792 37,906
Average amount outstanding during the year ................................................. 45,330 39,153 37,729
Maximum quarter-end balance outstanding during the year .......................... 55,842 51,792 38,907
Weighted average interest rate during the year ............................................... 5.0% 7.0% 5.1%
Weighted average interest rate at the year-end ............................................... 3.1% 6.5% 4.8%