HSBC Announces 96.6 Percent Of New Ordinary Shares Subscribed

HSBC Holdings plc (HSBC) announces that under the terms of the 5 for 12 Rights Issue announced on 2 March 2009, valid acceptances have been received in respect of 4,887,538,091 New Ordinary Shares representing 96.6% of the total number of

By None

HSBC Holdings plc (HSBC) announces that under the terms of the 5 for 12 Rights Issue announced on 2 March 2009, valid acceptances have been received in respect of 4,887,538,091 New Ordinary Shares representing 96.6% of the total number of New Ordinary Shares offered to Qualifying Shareholders.

Listed on 5 stock exchanges, HSBC shares are held by over 210,000 shareholders in over 120 countries and territories.

Envisaged that sale of remaining 3.4% of New Ordinary Shares will complete on 6 April.

Rights Issue will strengthen capital ratios: core equity tier 1 ratio of 8.5 per cent and tier 1 ratio of 9.8 per cent, in each case on a pro forma basis as at 31 December 2008.

“I would like to thank shareholders for their support in this successful Rights Issue,” says Stephen Green, group chairman of HSBC. “This underlines our determination that HSBC should maintain its signature financial strength which has served us so well over HSBCs long history. We remain confident that HSBC is well-placed in todays environment and that our strength leads to opportunity.”

As disclosed in Part VIII of the prospectus issued by HSBC in connection with the Rights Issue dated 17 March 2009 (the Prospectus), Goldman Sachs International, JPMorgan Cazenove and HSBC Bank plc (the Joint Global Coordinators) will use reasonable endeavours to procure acquirers for the balance of New Ordinary Shares (representing 3.4% of the total number of New Ordinary Shares) not validly taken up in the Rights Issue.

HSBC has seen strong and consistent investor support throughout the Rights Issue. Based on expressions of interest from investors during this time, the Joint Global Coordinators expect to place the unsubscribed 172,700,974 New Ordinary Shares on Monday 6 April 2009, over a short timeframe.

The Issue Price of 254 pence will be subtracted from the proceeds of the sale of each such New Ordinary Share, and paid to HSBC. Any premium per New Ordinary Share over the Issue Price of 254 pence and sale expenses will be distributed to Qualifying Shareholders who did not exercise their Rights, except that amounts of less than 5.00 per holding will be retained by HSBC. Shareholders on the Hong Kong register will receive any such payment in Hong Kong Dollars and Shareholders on the Bermuda register will receive any such payment in United States Dollars. In the unlikely event that any of these New Ordinary Shares are not sold, they would be acquired by the Underwriters at the Issue Price of 254 pence per New Ordinary Share in accordance with the terms of the Underwriting Agreement.

A further announcement as to the number of New Ordinary Shares for which acquirers have been procured and those (if any) which are to be acquired by the Underwriters will be made in due course.

Unless otherwise defined in this announcement, capitalised terms shall have the meaning given to them in the Prospectus.

D.C.

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