HSBC Holdings on Tuesday launched a cash offer to buy back four series of subordinated notes with a total outstanding principal of about $2.8 billion.
The tender offer is for any and all of its outstanding 7.625% and 7.350% notes due in 2032, 6.500% notes due in 2036, and 6.800% notes due in 2038, the company said in a statement.
The move follows a February announcement that the bank would no longer count the notes towards its regulatory capital requirements.
According to the company, the current offer is being made to repurchase notes that remained outstanding after a similar exchange and cash offer in 2022.
The offer is set to expire on Sept. 8, with settlement expected on Sept. 11.
HSBC said it would finance the purchase with cash on hand and also expects to launch a new issue of subordinated debt.
Investors who tender their old notes may receive priority in the allocation of the new securities, the bank added.
Any notes accepted in the offer will be cancelled and retired.
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