HSBC 2011 Annual Report Download - page 390

HSBC HOLDINGS PLC
Notes on the Financial Statements (continued)
34 – Subordinated liabilities
388
HSBC’s subordinated liabilities (continued)
2011 2010
US$m US$m
The Hongkong and Shanghai Banking Corporation Ltd and subsidiaries
US$300m Callable subordinated floating rate notes 20179 .......................................................... 300 300
AUD200m Callable subordinated floating rate notes 2020 ........................................................... 203 204
US$400m Primary capital undated floating rate notes ................................................................. 406 407
US$400m Primary capital undated floating rate notes (second series) ........................................ 403 403
US$400m Primary capital undated floating rate notes (third series) ............................................ 400 400
US$450m Callable subordinated floating rate notes 201610 ......................................................... – 450
AUD200m Callable subordinated floating rate notes 201611 ......................................................... – 204
Other subordinated liabilities each less than US$200m .............................................. 362 368
2,074 2,736
HSBC USA Inc., HSBC Bank USA, N.A. and HSBC Finance Corporation
US$1,000m 4.625% subordinated notes 2014 ................................................................................. 1,009 1,009
US$500m 6.00% subordinated notes 2017.................................................................................... 505 526
US$1,250m 4.875% subordinated notes 2020 ................................................................................. 1,259 1,252
US$750m 5.00% subordinated notes 2020 ................................................................................... 744 747
US$2,939m 6.676% senior subordinated notes 202112 .................................................................... 2,177 2,174
US$200m 7.808% capital securities 2026 .................................................................................... 200 200
US$200m 8.38% capital securities 2027 ...................................................................................... 200 200
US$1,000m 5.875% subordinated notes 2034 ................................................................................. 951 971
US$1,000m 5.911% trust preferred securities 203513 ...................................................................... 994 994
US$750m 5.625% subordinated notes 2035 ................................................................................. 712 728
US$700m 7.00% subordinated notes 2039 ................................................................................... 681 694
US$250m 7.20% subordinated debentures 2097 .......................................................................... 214 213
Other subordinated liabilities each less than US$200m .............................................. 698 780
10,344 10,488
Other HSBC subsidiaries
BRL383m Subordinated certificates of deposit 2015 ................................................................... 206 231
BRL500m Subordinated certificates of deposit 2016 ................................................................... 268 301
US$250m Non-convertible subordinated obligations 2019 ......................................................... 232 248
CAD200m 4.94% subordinated debentures 2021 .......................................................................... 195 200
CAD400m 4.80% subordinated notes 2022 ................................................................................... 417 417
Other subordinated liabilities each less than US$200m .............................................. 1,567 1,533
2,885 2,930
52,217 57,202
Subordinated loan capital is repayable at par on maturity, but some is repayable prior to maturity at the option of the
borrower, generally subject to prior notification to the FSA and, where relevant, the consent of the local banking
regulator, and 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 of up to
10.176%.
1 See page 389, paragraph (a).
2 See page 389, paragraph (b).
3 The interest rate on the callable subordinated variable coupon notes 2017 is fixed at 5.75% 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%.
4 The interest rate on the 4.75% callable subordinated notes 2020 changes in September 2015 to three-month sterling LIBOR plus
0.82%.
5 The interest margin on the callable subordinated floating rate notes 2020 increases by 0.5% from September 2015.
6 The interest rate on the 5.00% callable subordinated notes 2023 changes in March 2018 to become the rate per annum which is the
sum of the gross redemption yield of the then prevailing five-year UK gilt plus 1.80%.
7 The interest rate on the 5.375% callable subordinated step-up notes 2030 changes in November 2025 to three-month sterling LIBOR
plus 1.50%.
8 In March 2011, HSBC redeemed its €800m callable subordinated floating rate notes 2016 and its €600m 4.25% callable subordinated
notes 2016 at par.
9 The interest margin on the callable subordinated floating rate notes 2017 increases by 0.5% from July 2012.
10 In July 2011, HSBC redeemed its callable subordinated floating rate notes 2016 at par.
11 In May 2011, HSBC redeemed its callable subordinated floating rate notes 2016 at par.
12 Approximately 25% of the 6.676% senior subordinated notes 2021 is held by HSBC Holdings.
13 The distributions on the trust preferred securities 2035 change in November 2015 to three-month dollar LIBOR plus 1.926%.
Footnotes 3 to 7, 9 and 13 relate to notes that are repayable at the option of the borrower on the date of the change of the interest rate, and
at subsequent interest rate reset dates and interest payment dates in some cases, subject to prior notification to the Financial Services
Authority and, where relevant, the consent of the local banking regulator.