Last week HSBC announced the allocation policy for its e25 million bond issue, which was over-subscribed within one hour of the opening of subscriptions. The bank has exercised the over-allotment option of a further e5 million, bringing the total bond issue to e30 million. HSBC’s CEO Alan Richards said the company received over 2,800 applications, for a total value exceeding e53 million. Subscriptions at both the pre-placement stage and the public offer had to be scaled down accordingly.

Public offer applications up to a value of e4,000 were accepted in full. In the case of applications over e4,000, the first e4,000 were met in full, while the remaining amount was scaled down to 15.933 per cent. The allocation was rounded down to the nearest e100.

Mr Richards thanked all applicants for their overwhelming support and stated that the allocation policy adopted ensures the fairest possible distribution of available bonds.

“HSBC, both globally and in Malta, is extremely well placed in these very challenging times with strong capital and liquidity positions. Overall, HSBC has a conservative approach to risk management, which underpins the strong HSBC brand. The proceeds from this capital raising will be used to support future growth for HSBC in Malta,” said Mr Richards. Refunds on the bonds where applicable will be made through direct credit into the applicant’s bank account. Interest on the bonds commenced as from 1 October.