HSBC 2008 Annual Report Download - page 429

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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.
HSBC Holdings
2008 2007
US$m US$m
Subordinated liabilities:
– At amortised cost ...................................................................................................................... 14,017 8,544
– Designated at fair value (Note 27) ............................................................................................ 16,389 18,683
30,406 27,227
HSBC Holdings subordinated borrowings
2008
US$m
2007
US$m
Amounts owed to third parties
€2,000m Callable subordinated floating rate notes 20141 ................................................... 2,805 2,905
US$2,500m 6.5% subordinated notes 2037 .............................................................................. 2,669 2,495
€1,600m 6.25% subordinated notes 2018 ............................................................................ 2,231 –
US$2,000m 6.5% subordinated notes 2036 .............................................................................. 2,052 2,058
US$1,500m 6.8% subordinated notes 2038 .............................................................................. 1,484 –
US$1,400m 5.25% subordinated notes 2012 ............................................................................ 1,455 1,413
€1,000m 5.375% subordinated notes 2012 .......................................................................... 1,403 1,488
£900m 6.375% callable subordinated notes 20222 ........................................................... 1,330 1,858
£750m 7.0% subordinated notes 2038 .............................................................................. 1,140 –
US$1,000m 7.5% subordinated notes 2009 .............................................................................. 1,068 1,077
£650m 6.75% subordinated notes 2028 ............................................................................ 938 –
£650m 5.75% subordinated notes 2027 ............................................................................ 878 1,262
€700m 3.625% callable subordinated notes 20203 ........................................................... 840 922
US$750m Callable subordinated floating rate note 20161 .................................................... 750 750
US$750m Callable subordinated floating rate notes 20151 ................................................... 750 750
US$488m 7.625% subordinated notes 2032 .......................................................................... 609 609
£250m 9.875% subordinated bonds 20184 ....................................................................... 441 619
€300m 5.5% subordinated notes 2009 .............................................................................. 432 457
US$222m 7.35% subordinated notes 2032 ............................................................................ 269 268
23,544 18,931
Amounts owed to HSBC undertakings
€1,400m 5.3687% fixed/floating subordinated notes 2043 –
HSBC Capital Funding (Euro 2) LP ..................................................................... 1,532 2,018
US$1,350m 9.547% subordinated step-up cumulative notes 2040 –
HSBC Capital Funding (Dollar 1) LP .................................................................. 1,337 1,335
US$900m 10.176% subordinated step-up cumulative notes 2040 –
HSBC Capital Funding (Dollar 1) LP .................................................................. 900 900
€600m 8.03% subordinated step-up cumulative notes 2040 –
HSBC Capital Funding (Euro 1) LP ..................................................................... 834 878
€750m 5.13% fixed/floating subordinated notes 2044 –
HSBC Capital Funding (Euro 3) LP ..................................................................... 790 1,039
US$1,250m 4.61% fixed/floating subordinated notes 2043 –
HSBC Capital Funding (Dollar 2) LP .................................................................. 745 1,130
£500m 8.208% subordinated step-up cumulative notes 2040 –
HSBC Capital Funding (Sterling 1) LP ................................................................ 724 996
6,862 8,296
30,406 27,227
1 The interest margins on the callable subordinated floating rate notes 2014, 2015 and 2016 increase by 0.5 per cent from September
2009, March 2010 and October 2011 respectively. The notes are repayable from their step up date at the option of the borrower, subject
to the prior notification of the Financial Services Authority (‘FSA’).
2 The interest rate on the 6.375 per cent callable subordinated notes 2022 changes in October 2017 to become three-month sterling
LIBOR plus 1.3 per cent. The notes may be redeemed at par from October 2017 at the option of the borrower, subject to the prior
notification of the FSA.
3 The interest rate on the 3.625 per cent callable subordinated notes 2020 changes in June 2015 to become three-month EURIBOR plus
0.93 per cent. The notes may be redeemed at par from June 2015 at the option of the borrower, subject to the prior notification of the
FSA.