hang-seng-strengthens-its-capital-base-via-frn

Hang Seng strengthens its capital base via FRN

HSBC helps Hang Seng price a new lower-tier 2 offering in line with price guidance.
On Friday June 23 Hong KongÆs Hang Seng Bank priced a $450 million Reg-S lower tier 2 subordinated offering via sole bookrunner and parent company HSBC. The co-managers were Mitsubishi UFJ Securities and Mizuho International.

The 10-year no call five year FRN priced in line with initial guidance.

The deal was shopped to investors in Hong Kong and Singapore, with price guidance in the 33bp over Libor area.

The leads then priced the Aa3A rated notes at three-month Libor plus 30bp on a reoffer price of 99.869%. This equated to a yield of Libor plus 33bp. The notes step-up an additional 50bp if they are not called. Fees were 25 cents.

The leads...
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