HSBC raises $2 billion in additional Tier 1 bonds

March 1 (Reuters) – HSBC Holdings said on Wednesday it had raised $2 billion in a convertible issue, beating its own target on strong demand for the additional perpetual Tier 1 bond.

In a statement to the Hong Kong Stock Exchange, HSBC said the coupon on the perpetual bond was set at 8%.

In the transaction presentation document, published on Tuesday, potential investors were informed that the initial indicative price of the coupon was 8.5%. The final rate will fluctuate based on investor demand.

Reuters reported on Tuesday that HSBC was aiming to raise up to $1.5 billion under the deal, but the final volume was set above its initial target.

HSBC said in a sales report that it intended to use the cash raised to refinance some of its debt, for general corporate purposes and to strengthen its capital base.

(Reporting by Scott Murdoch in Sydney and Sameer Manekar in Bengaluru; Editing by Sherry Jacob-Phillips and Sonali Paul; Editing in Spanish by Dario Fernandez)