HSBC Bank Malta plc - Raising of Tier 2 Capital
On 12 December 2023, HSBC Bank Malta plc announced that it entered into a 10-year unsecured €65 million loan agreement with its parent company HSBC Continental Europe to enable the bank to raise its Tier 2 capital. The loan bears interest at a rate equal to 3-month EURIBOR plus a margin of 237 basis points which currently results in an effective rate of around 6.33%. Furthermore, the bank explained that a previous 10-year unsecured €60 million loan agreement that it had previously entered into with HSBC Bank plc in December 2021 to meet the minimum requirement for own funds and eligible liabilities (‘MREL’) as set by the Single Resolution Board has now been assigned on the same terms to HSBC Continental Europe.
On 14 December, HSBC Bank Malta plc announced that following regulatory approval, it repaid the €62 million loan with HSBC Bank plc, which it had entered into on 12 December 2018 and had an early call repayment option exercisable on 14 December 2023.