SINGAPORE — HSBC Holdings has launched a benchmark Australian dollar bond sale offering six-year and 11-year senior unsecured notes, according to a term sheet reviewed by Reuters.
The final size of the deal had not been set, but orders have reached more than A$3.45 billion ($2.5 billion), including A$80 million from joint lead managers, according to an updated note sent after the term sheet.
Demand stood at more than A$1.24 billion for the six-year floating-rate notes, more than A$1.18 billion for the six-year fixed-to-floating notes and more than A$1.035 billion for the 11-year fixed-to-floating notes, the update said.
The six-year notes include a floating-rate option and a fixed-rate option that later switches to a floating rate. The 11-year notes start with a fixed rate and later switch to a floating rate.
Price guidance remains unchanged at about 135 basis points over the relevant benchmark for the six-year notes. The fixed-rate six-year notes have an indicated yield of 6.10 percent.
The 11-year notes are being marketed at about 170 basis points over the benchmark. They have an indicated yield of 6.68 percent.
HSBC plans to use the proceeds for general corporate purposes. The deal is expected to price later on Tuesday in Sydney.
ANZ, CBA, HSBC, Mizuho, NAB and Westpac are joint lead managers.
