HSBC 2009 Annual Report Download - page 459

457
Collateral accepted as security for assets
The fair value of assets accepted as collateral that HSBC is permitted to sell or repledge in the absence of default is
US$362,560 million (2008: US$290,469 million). The fair value of any such collateral that has been sold or
repledged was US$215,940 million (2008: US$159,256 million). HSBC is obliged to return equivalent securities.
These transactions are conducted under terms that are usual and customary to standard securities borrowing and
reverse repurchase agreements.
36 Minority interests
2009 2008
US$m US$m
Minority interests attributable to holders of ordinary shares in subsidiaries .......................................... 4,665 4,227
Preference shares issued by subsidiaries ................................................................................................. 2,697 2,411
7,362 6,638
Preference shares issued by subsidiaries
2009 2008
US$m US$m
US$575m 6.36% non-cumulative preferred stock, Series B1 ...................................................... 559 559
US$518m Floating rate non-cumulative preferred stock, Series F2 ............................................ 518 518
US$374m Floating rate non-cumulative preferred stock, Series G3 ............................................ 374 374
US$374m 6.50% non-cumulative preferred stock, Series H3 ...................................................... 374 374
CAD250m Non-cumulative 5 year rate reset class 1 preferred shares, Series E4 ......................... 238 –
CAD175m Non-cumulative redeemable class 1 preferred shares, Series C5 ................................ 167 143
CAD175m Non-cumulative class 1 preferred shares, Series D5 ................................................... 167 143
US$150m Depositary shares each representing 25% interest in a share of
adjustable-rate cumulative preferred stock, Series D6 ............................................ 150 150
US$150m Cumulative preferred stock7 ....................................................................................... 150 150
2,697 2,411
1 The Series B preferred stock is redeemable at the option of HSBC Finance Corporation, in whole or in part, from 24 June 2010 at par.
2 The Series F preferred stock is redeemable at par at the option of HSBC USA Inc., in whole or in part, on any dividend payment date on
or after 7 April 2010.
3 The Series G and Series H preferred stock are redeemable at par at the option of HSBC USA Inc., in whole or in part, at any time from
1 January 2011 and 1 July 2011, respectively.
4 The Series E preferred shares are redeemable at par at the option of HSBC Bank Canada, in whole or in part from 30 June 2014.
5 The Series C and Series D preferred shares are redeemable at a declining premium above par at the option of HSBC Bank Canada, in
whole or in part, from 30 June 2010 and 31 December 2010, respectively.
6 The preferred stock has been redeemable at the option of HSBC USA Inc., in whole or in part, from 1 July 1999 at par.
7 The preferred stock has been redeemable at the option of HSBC USA Inc., in whole or in part, from 1 October 2007 at par.
All redemptions are subject to prior notification to the Financial Services Authority and, where relevant, the local
banking regulator.
37 Called up share capital and other equity instruments
Authorised
The concept of authorised share capital was abolished under the UK Companies Act 2006 with effect from 1 October
2009 and consequential amendments to the Company’s Articles of Association were approved by shareholders at the
2009 Annual General Meeting.
At 31 December 2008, the authorised ordinary share capital of HSBC Holdings was US$7,500 million divided into
15,000 million ordinary shares of US$0.50 each.
At 31 December 2008, the authorised preference share capital of HSBC Holdings was 10 million non-cumulative
preference shares of £0.01 each, 10 million non-cumulative preference shares of US$0.01 each, and 10 million non-
cumulative preference shares of €0.01 each.