Company: HBCYF
Filing Date: 2025-02-25
Form Type: 424B5
Source: 0001193125-25-034819
Chunk: 68

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-25
Form: 424B5
Chunk 68
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 the principal amount of, or interest on, certain unsecured liabilities of a failing financial institution and/or convert certain debt claims into another security,
including ordinary shares of the surviving entity or its holding company. In addition, the Bank of England may use the bail-in tool to, among other things, replace or substitute the issuer as obligor in
respect of debt instruments, modify the terms of debt instruments (including altering the maturity (if any) and/or the amount of interest payable and/or imposing a temporary suspension on payments), discontinue the listing and admission to trading
of financial instruments and/or transfer securities of the relevant financial institution to a third party appointed by the Bank of England. The Bank of England must apply the bail-in tool in accordance with a
specified preference order. In particular, the Banking Act requires resolution authorities to write-down or convert debts in the following order: (i) additional Tier 1 instruments, (ii) Tier 2
instruments, (iii) other subordinated claims that do not qualify as additional Tier 1 or Tier 2 instruments and (iv) certain senior claims. As a result, additional Tier 1 instruments (including the Securities) may be fully or partially
written down or converted before subordinated debt that does not qualify as an additional Tier 1 or Tier 2 instrument (and any such subordinated debt would only be written down or converted if the reduction of additional Tier 1 and Tier 2
instruments does not sufficiently reduce the aggregate amount of liabilities that must be written down or converted). Unlike the capital instruments and liabilities write-down and conversion power, the bail-in tool has a safeguard designed to leave no creditor worse off than in the case of insolvency. However, due to the discretion afforded to the Bank of England, the claims of some creditors whose claims would
rank equally with yours may be excluded from being subject to the bail-in tool. The greater number of such excluded creditors there are, the greater the potential impact of the
bail-in tool on other creditors who have not been excluded (which may include you).

Any exercise
of the write-down and conversion of capital instruments and liabilities power or the bail-in power in respect of the Securities could occur before a Capital Adequacy Trigger Event occurs pursuant to the terms
of the Securities and any consequent conversion of the Securities into Conversion Shares. The outcome of any such exercise of these powers may include the Securities being fully written down, in which case investors in the Securities will not have
their Securities converted as contemplated by