Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16]
20 February 2025 - 12:34AM
Edgar (US Regulatory)
FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
For the
month of February
HSBC Holdings plc
42nd
Floor, 8 Canada Square, London E14 5HQ, England
(Indicate
by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F).
Form
20-F X Form 40-F
19 February 2025
HSBC HOLDINGS PLC
CHANGE IN OWN FUNDS AND MREL RECOGNITION OF CERTAIN DEBT
SECURITIES
HSBC Holdings plc ('HSBC') has in issue certain legacy New York
law-governed subordinated debt securities (the 'Legacy Tier 2
Securities') and one legacy New
York law-governed senior debt security (the 'Legacy Senior
Security'), each of which do
not contain a contractual recognition of UK bail-in powers
('CROB
clause') within their
respective terms and conditions. The Legacy Tier 2 Securities were
grandfathered as tier 2 capital instruments until 28 June 2025 and
the Legacy Senior Security was permanently grandfathered as
eligible liabilities, in each case pursuant to UK
CRR[1].
Details of the relevant securities are set out in the table
below.
HSBC announces that from today it will no longer count the Legacy
Tier 2 Securities as tier 2 capital instruments for UK CRR
purposes. Furthermore, HSBC will also not count the Legacy Tier 2
Securities and the Legacy Senior Security towards its minimum
requirement for own funds and eligible liabilities
('MREL')[2].
The action to no longer count the Legacy Tier 2 Securities is
intended to avoid the loss of tier 2 capital eligibility for HSBC's
other remaining non-legacy tier 2 securities pursuant to UK CRR,
which would otherwise have occurred at the end of the
grandfathering period in June 2025.
The action to no longer count the Legacy Senior Security towards
HSBC's MREL has been taken in order to be consistent with its
treatment of the Legacy Tier 2 Securities and in recognition of the
Bank of England's position on securities governed under non-UK law
without a CROB clause (as set out in its recent consultation
paper[3]).
These actions would have reduced HSBC's MREL as a percentage of
risk-weighted assets by 54 basis points and its total capital ratio
by 46 basis points had they been taken at the end of the financial
year ended 31 December 2024.There is no impact on the total capital
ratio excluding transitional arrangements of the UK
CRR.
|
Tier
|
ISIN
|
Currency
|
Amount outstanding
|
Maturity date
|
|
Legacy
Tier 2 Security
|
US404280AF65
|
USD
|
263,654,000
|
17/05/2032
|
|
Legacy
Tier 2 Security
|
US404280AE90
|
USD
|
124,748,000
|
27/11/2032
|
|
Legacy
Tier 2 Security
|
US404280AG49
|
USD
|
1,430,811,000
|
02/05/2036
|
|
Legacy
Tier 2 Security
|
US404280AH22
|
USD
|
1,514,640,000
|
15/09/2037
|
|
Legacy
Tier 2 Security
|
US404280AJ87
|
USD
|
961,295,000
|
01/06/2038
|
|
Legacy
Senior Security
|
US404280AM17
|
USD
|
750,000,000
|
14/01/2042
|
Investor enquiries to:
Greg
Case
+44 (0) 20 7992
3825 investorrelations@hsbc.com
Media enquiries to:
Press
Office
+44 (0) 20 7991
8096 pressoffice@hsbc.com
Note to editors:
HSBC Holdings plc
HSBC Holdings plc, the parent company of HSBC, is headquartered in
London. HSBC serves customers worldwide from offices in
58 countries and territories. With assets of US$3,017bn at
31 December 2024, HSBC is one of the world's largest
banking and financial services organisations.
__________________________________________________________
[1] Regulation
(EU) No. 575/2013, as it forms part of domestic law in the UK by
virtue of the European Union (Withdrawal) Act 2018, as
amended.
[2] HSBC's
MREL requirements are set pursuant to (i) UK CRR and (ii) the Bank
of England's Statement of Policy entitled 'The Bank of England's
approach to setting a minimum requirement for own funds and
eligible liabilities (MREL)' (December 2021).
[3] The
Bank of England's Consultation paper entitled 'Amendments to the
Bank of England's approach to setting a minimum requirement for own
funds and eligible liabilities (MREL)' published on 15 October
2024.
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
|
HSBC
Holdings plc
|
|
|
|
|
|
By:
|
|
|
Name:
Aileen Taylor
|
|
|
Title:
Group Company Secretary and Chief Governance Officer
|
|
|
|
|
|
Date:
19 February 2025
|
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