HSBC 2012 Annual Report Download - page 484

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
33 – Subordinated liabilities
482
consolidated basis falls below the regulatory minimum ratio required, or (iii) in view of the deteriorating financial
condition of HSBC Bank, the Directors expect (ii) to occur in the near term, then the preferred securities will be
substituted by preference shares of HSBC Bank having economic terms which are in all material respects equivalent
to those of the preferred securities and the guarantee taken together.
Upper tier 2 capital securities
Upper tier 2 capital securities are perpetual subordinated securities on which there is an obligation to pay coupons.
Such securities rank below lower tier 2 securities for coupon payments and in the event of a winding-up.
HSBC has the following qualifying upper tier 2 securities in issue:
At 31 December
First call
date
2012
US$m
2011
US$m
HSBC Bank plc
US$750m Undated floating rate primary capital notes ...................................................... Jun 1990 750 750
US$500m Undated floating rate primary capital notes ...................................................... Sep 1990 499 500
US$300m Undated floating rate primary capital notes, series 3 ........................................ Jun 1992 301 300
1,550 1,550
The Hongkong and Shanghai Banking Corporation Ltd
US$400m Primary capital undated floating rate notes ....................................................... Aug 1990 405 406
US$400m Primary capital undated floating rate notes (second series) .............................. Dec 1990 402 403
US$400m Primary capital undated floating rate notes (third series) .................................. Aug 1991 400 400
1,207 1,209
Other HSBC subsidiaries
Other perpetual subordinated loan capital less than US$100m ........................ 21 21
Lower tier 2 capital securities
Lower tier 2 capital securities are dated securities on which there is an obligation to pay coupons. In accordance with
the FSA’s GENPRU, the capital contribution of lower tier 2 securities is amortised for regulatory purposes on a
straight-line basis in their final five years before maturity.
HSBC has the following qualifying lower tier 2 securities in issue:
At 31 December
First call
date
Maturity
date
2012
US$m
2011
US$m
HSBC Bank plc
£350m Callable subordinated variable coupon notes1 ........................... Jun 2012 Jun 2017 – 550
£500m 4.75% callable subordinated notes2 ........................................... Sep 2015 Sep 2020 844 759
£350m 5.00% callable subordinated notes3 ........................................... Mar 2018 Mar 2023 630 533
£300m 6.50% subordinated notes .......................................................... – Jul 2023 483 463
£350m 5.375% callable subordinated step-up notes4 ............................ Nov 2025 Nov 2030 630 493
£500m 5.375% subordinated notes ........................................................ – Aug 2033 925 678
£225m 6.25% subordinated notes .......................................................... – Jan 2041 362 346
£600m 4.75% subordinated notes .......................................................... – Mar 2046 958 917
€500m Callable subordinated floating rate notes5 ................................. Sep 2015 Sep 2020 606 550
US$300m 7.65% subordinated notes .......................................................... – May 2025 394 374
5,832 5,663
Hang Seng Bank Limited
US$300m Callable subordinated floating rate notes1 ................................. Jul 2012 Jul 2017 – 300
– 300
HSBC Bank Australia Limited
AUD200m Callable subordinated floating rate notes .................................. Nov 2015 Nov 2020 207 203
AUD42m Callable subordinated floating rate notes6 ................................. Mar 2013 Mar 2018 44 42
251 245
HSBC Bank Malaysia Berhad
MYR500m 4.35% subordinated bonds ......................................................... Jun 2017 Jun 2022 164 158
MYR500m 5.05% subordinated bonds ......................................................... Nov 2022 Nov 2027 168 162
332 320