By Scott Murdoch
SYDNEY (Reuters) -HSBC Holdings is aiming to raise up to $1.5 billion in in a perpetual additional Tier 1 bond, according to a source with direct knowledge of the matter.
The non-call 5.5-year bond was launched on Tuesday, a term sheet seen by Reuters shows, but does not outline how much the bank is targetting to raise.
The source could not be named as the information was not yet made public. HSBC declined to comment.
Initial price guidance for the bond’s coupon is 8.5%, according to the term sheet. The final rate set could change based on demand from investors.
HSBC said in a sale memo that it intends to use the cash raised for refinancing some debt, general corporate purposes and strengthening its capital base.
HSBC is the sole book runner for the deal, which is set to price later on Tuesday.
(Reporting by Scott Murdoch in Sydney; Editing by Jacqueline Wong and Tom Hogue)
