HSBC Middle East Raises $400m Through Five-Year Bond Sale

HSBC Bank Middle East raised $400 million in a five-year bond issue late on Tuesday at a spread of 85 basis points over mid-swaps, a document from the bank said.

The lender had said earlier on Tuesday it was set to raise a minimum of $300 million from the bond sale at the tighter end of its initial guidance of between 85 bps and 90 bps over the benchmark.

The issue, arranged solely by HSBC, priced at a coupon of 2.75 per cent, with a reoffer price of 99.824.

HSBC Middle East is expecting a rating equivalent to its parent’s score of AA- by Fitch, although its A2 rating by Moody’s is two notches lower than what the agency ascribes to HSBC Holdings.