HSBC’s inaugural Samurai Bonds a success

HSBC Bank plc, a wholly-owned subsidiary of HSBC Holdings plc, has set the size of its inaugural samurai bonds at JPY119.4 billion. This is almost twice the proposed size of JPY60 billion which was initially registered on 31 August, 2009.

The HSBC samurai bonds comprise one fixed rate tranche (total size of JPY89.8 billion) and one floating rate tranche (total size of JPY29.6 billion), each with a 5-year tenor. The fixed rate bond carries a coupon of 1.49 per cent or 60 basis points over the 5-year yen swap offer rate. The floating rate bond was priced at 70 basis points over 3-month yen Libor. The closing and maturity dates are 29 September, 2009 and 29 September, 2014 respectively.

Commenting on the successful offering, Ian Jenkins, European Regional Chief Financial Officer, HSBC Bank plc, said, “We are very pleased with this transaction, all the more so for it being HSBC Bank plc’s debut Samurai issue. It is the largest non-guaranteed Samurai issue so far in 2009 and it priced at the tight end of our expectations. The tremendous reception given to this issue by Japanese investors reflects the quality of the HSBC name and the high regard for HSBC in Japan.”

HSBC Securities (Japan) Limited, Mitsubishi UFJ Securities Co., Ltd. and Mizuho Securities Co., Ltd. acted as Joint Lead Managers for the bonds.