Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 40

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 40
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 additional Tier 1 capital), while the ALRB and CCyLB must be met entirely with common equity Tier 1 capital (and the
common equity Tier 1 capital used for the purposes of the PRA Leverage Ratio must not be included for the purposes of the ALRB and CCyLB).

Under Rule 4.3 of Chapter 4 of the “CRR Firms – Capital Buffers” Part of the PRA Rulebook (or, if applicable, Rule 6.2(2) of
section 6 of the PRA’s Capital Buffers and Pillar 2A Model Requirements Voluntary Requirement (“VREQ”) or any succeeding provision(s) amending or replacing such rule), if a relevant firm fails to meet the combined buffer it will be
subject to mandatory restrictions on certain distributions or payments, calculated by reference to a maximum distributable amount (which are defined broadly by the PRA Rulebook (or the VREQ, as applicable) as payments or distributions relating to
common equity Tier 1, variable remuneration, or discretionary pension benefits and payments on additional Tier 1 instruments (such as the Securities)). These requirements apply to firms on a consolidated basis. The restrictions for failing to meet
the combined buffer is scaled according to the extent of the use of the combined buffer and currently calculated as a percentage of the profits from the past four calendar quarters, net of distributions or discretionary payment. Such calculation
will result in a maximum distributable amount in each relevant period. As an example, the scaling is such that in the bottom quartile of the combined buffer, no discretionary payments will be permitted to be paid. As a consequence, in the event that
the consolidated common equity Tier 1 is insufficient to meet the combined

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buffer, it may be necessary to reduce discretionary payments in whole or in part, including potentially cancelling (in whole or in part) interest payments in respect of the Securities.

The PRA also has the power under sections 192C and 192T of the FSMA to impose requirements on us, the effect of which may be to restrict or
prohibit payments of interest to you, which is most likely to materialize if at any time we are failing, or are expected to fail, to meet our capital requirements. If the PRA exercises its discretion, we will cancel (in whole or in part, as required
by the PRA) interest payments in respect of the Securities. In addition, as a result of measures introduced by