HSBC 2002 Annual Report Download - page 249

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At 31 December 2002, the other HSBC subordinated borrowings were as follows:
2002 2001
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
£350m Callable subordinated variable coupon notes 20171........................... 564
–
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............................................................ 480 432
US$400m 8.625% subordinated notes 2004........................................................ 399 400
HK$3,000m Subordinated collared (7% to 9%) floating rate notes 2003............... 385 385
US$375m Subordinated step-up coupon floating rate notes 20092..................... 374 375
US$350m 7.4% subordinated guaranteed notes 2003 ......................................... 350 350
£225m 6.25% subordinated notes 2041.......................................................... 360 323
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 20253........................................................ 299 300
US$300m 7% subordinated notes 2006............................................................... 299 299
£200m 9% subordinated notes 2005............................................................... 322 290
US$250m 7.25% subordinated notes 2002..........................................................
–
250
US$250m 5.875% subordinated notes 2008........................................................ 230 226
£150m 9.25% step-up undated subordinated notes4....................................... 242 217
£150m 8.625% step-up undated subordinated notes5..................................... 242 217
£150m Subordinated step-up coupon floating rate notes 2007.......................
–
217
US$250m 7.20% subordinated debentures 2097................................................. 215 215
BRL472m Subordinated debentures 2008 ........................................................... 134 204
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
JP¥24,800m Fixed rate (5.0% to 5.5%) Subordinated Loans 2004......................... 209 189
Other subordinated liabilities less than US$200m ..................................................... 3,327 3,621
12,581 12,660
1 The interest on the Callable subordinated variable coupon notes is fixed at 5.75 per cent until June 2012. Thereafter, the rate per
annum is the sum of the gross redemption yield of the then prevailing five-year UK gilt plus 1.70 per cent. The notes are repayable at
the option of the borrower in June 2012, subject to the prior consent of the Financial Services Authority.
2 The interest margin on the Subordinated Step-up coupon floating rate notes 2009 increases by 0.5 per cent five years prior to its
maturity date. The notes are then repayable at the option of the borrower, subject to the prior consent of the Financial Services
Authority.
3 The 7.65 per cent Subordinated notes are repayable at the option of each of the holders in May 2007.
4 The 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.
5 The 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.
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 9.875%.