HSBC Holdings said Wednesday it has issued $1.5 billion in new debt, a move that follows a recent effort to retire older bonds as part of a capital structure overhaul.
The bank issued subordinated unsecured notes that carry a 5.741% interest rate and are due in 2036, according to a company filing.
The issuance comes after HSBC launched a cash tender offer earlier this month for four series of older subordinated notes with a total outstanding principal of about $2.8 billion.
The bank had previously said it would no longer count that older debt towards its Tier 2 capital, a key measure of a bank's financial strength under regulatory rules.
On Tuesday, the company announced the results of the buyback, accepting about $510 million in principal amount of the tendered notes.
The company had signaled it would launch a new issue of subordinated debt in conjunction with the buyback offer.
Subordinated debt is a type of loan that ranks below other debt in the event of a company's liquidation and is used by banks to bolster their capital buffers.
HSBC said it will apply to list the new notes on the New York Stock Exchange.
More from this issuer
Related coverage
HSBC Holdings will take a $1.1 billion provision in its third-quarter results related to long-running litigation stemming from the Bernard Madoff fraud, the company said Sunday.
HSBC Holdings on Thursday announced a proposal to take full ownership of its Hong Kong subsidiary, Hang Seng Bank, in a deal valued at approximately 106.2 billion Hong Kong dollars ($13.6 billion).
HSBC Holdings on Monday announced the pricing for its offer to buy back four series of subordinated notes, part of a move to manage its regulatory capital.
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.