HSBC 2004 Annual Report Download - page 56

HSBC HOLDINGS PLC
Financial Review (continued)
54
• HSBC acted as the sole financial advisor to
Total SA in the take-over bid launched by its
subsidiary, Sanofi-Synthélabo, for Aventis, to
create the world’ s 3rd largest pharmaceutical
group.
• HSBC continued to make progress in Europe
and the Americas, arranging major financing for
clients, including a US$11.8 billion multi-
tranche financing for Network Rail.
• HSBC debt finance successfully completed a
US$2.4 billion syndicated facility for Telefonos
de Mexico S.A. de C.V. (Telmex) and acted as a
joint lead and bookrunner on a US$1.75 billion
bond issue for Petroleos Mexicanos (PEMEX), a
pioneering transaction which opened the Asian
and retail markets for Latin American credit.
HSBC Chile, in conjunction with New York
debt capital markets, acted as a joint book-
runner in a US$500 million bond issue for
Codelco, achieving sub-sovereign pricing and
placements with HSBC’ s Asian investors.
• HSBC acted as advisor on a number of
significant transactions in equity capital
markets, including Ping An Insurance
Company’ s US$1.8 billion initial public
offering. HSBC also participated in the Hong
Kong Government’ s US$2.6 billion global bond
offering. The French state’ s US$1.5 billion issue
of equity in Autoroutes Paris-Rhin-Rhone was
the second privatisation of France’ s motorway
networks for which HSBC acted as a joint book-
runner and advisor.
• HSBC acted as sole bookrunner on Emirates
Airlines’ debut US$500 million seven-year
Eurobond issue, and was named Best Debt
House in the United Arab Emirates in the
Euromoney Awards for Excellence.
• Within Corporate and Institutional Banking, the
corporate loan market remained very
competitive during 2004, with many clients
taking advantage of low margins and bank
demand for assets to refinance on preferential
terms.
• In the improving economic climate, HSBC
achieved substantial recoveries against impaired
loans, helped by extensive restructuring and
refinancing activity worldwide.
• Following a significant development in 2004,
HSBCnet provides a single point of entry to a
range of sophisticated products and services
tailored for corporate, institutional, and mid-
market enterprise clients. The service is actively
used by HSBC clients in more than 110
countries globally. Functionality includes
award-winning economic research, treasury and
capital markets cash management, cross-border
payments, investment management and foreign
exchange tools, in a format that can be
personalised to meet clients’ individual needs.
• Global research was developed to encompass
Corporate, Institutional Banking and Markets’
research across all product areas.
• In Global Transaction Banking, the successful
integration of Bank of Bermuda contributed to
an increase in profitability. In Asia, the
payments and cash management product suite
was significantly enhanced with the launch of
‘Integrated payables and integrated receivables’
via HSBCnet.
• HSBC trade services benefited from increased
customer flows. HSBC developed a distinct
business line for Supply Chain, experiencing
significant early success with a major retailer.
• In securities services, the successful integration
of Bank of Bermuda’ s alternative funds
services, resulted in several new business
opportunities. In addition, HSBC agreed a seven
year deal with Gartmore to provide back office
operations.
• In Group Investment Businesses, assets under
management increased by 9 per cent to
US$224.2 billion and included US$11.1 billion
of net new client investments. Major successes
included the distribution of specialist emerging
market mutual funds through HSBC and third-
party financial product distributors in Europe
and Asia, strong growth in money market
investments from corporates in Europe and
North America, and flows into an alternative
bond investment product marketed to
institutions and private banks worldwide.