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Digitalisation in Debt Capital Markets

HSBC Capital Markets

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HSBC provided a comprehensive multi-solution to London Stock Exchange Group’s (LSEG) multi-issuer MTN programme. The use of LSEG’s new digital issuance platform, Flow, for the first time marked an important milestone in capital markets automation and digitalisation.

LSEG (London Stock Exchange Group) successfully completed multi-tranche and multi-currency offerings raising c. USD7 billion equivalent in USD, EUR and GBP under its newly established GBP10 billion GMTN programme – this was also its first USD Reg S/ Rule 144A issuance. LSEG’s new digital issuance platform, Flow, was used for the first time during the issuance process.

HSBC provided a comprehensive multi-solution to LSEG. The Debt Capital Markets team acted as one of four global coordinators, while the Issuer Services teams based in London and New York acted as Trustee and Paying Agent, working closely with LSEG and legal counsel to ensure seamless closing of the bonds. The bonds were listed on the Main Market of London Stock Exchange, and settled in DTC, Euroclear and Clearstream.

The initial transactions also included the largest multi-currency issue by a European corporate and the second-largest Yankee issue from a European corporate in 2021.

LSEG’s Flow platform is designed to automate the debt capital markets issuance process using structured data and General Purpose Legal Mark-Up Language (GLML), with transaction documentation drafted and agreed directly in Flow. This bond issuance marks an important milestone in capital markets automation and digitalisation, and demonstrates the potential of such platforms to improve current capital market workflows.

"HSBC was privileged to work closely with LSEG as one of the global coordinators, and to support the first transaction on the LSEG Flow digital platform. At HSBC, we strongly believe in the value of structured data through the lifecycle of a bond. Working closely with counsel and the other global coordinators, we were able to share deal documents in real time, and facilitate the intake of structured new issuance data at HSBC Issuer Services for this large and complex deal. We are keen to see more issuers globally take advantage of such opportunities in debt capital markets."

– Adam Bothamley, Global Head of Debt Capital Markets at HSBC

"HSBC Issuer Services was delighted to have the opportunity to work with LSEG on this innovative transaction and to play a key part in the successful establishment of their multi-issuer MTN programme. We continue to engage closely with LSEG and their technology partners to evolve digital tools to support debt capital market issuance and to improve transaction data workflows. Aligned to our digital strategy, we are committed to facilitating structured data flows, bringing more automation to the bond markets, and ultimately enhancing our client’s experience."

– Giovanni Fenocchi, Global Head of Issuer Services at HSBC

LSEG is a leading global financial markets infrastructure and data provider; leaders in data and analytics, risk, collateral and processing solutions, capital formation and trade execution.

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For Professional clients and Eligible Counterparties only. All information is subject to local regulations. Issued by HSBC Bank plc. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in England No 14259. Registered Office: 8 Canada Square London E14 5HQ United Kingdom.

Member HSBC Group.

For Reg S transactions:

The securities described in this communication have not been, and will not be, registered with the US Securities and Exchange Commission or any other US regulator, and were offered to persons outside the United States in compliance with Regulation S under the US Securities Act of 1933. Nothing in this communication should be relied upon as a promise or representation as to the future, creates any adviser / client relationship between any recipient and HSBC nor constitutes an invitation or inducement to engage in investment activity nor an offer, solicitation or invitation by HSBC for the sale or purchase of securities or any of the assets, business or undertaking described therein.

For Reg S/144A transactions:

This communication is not for distribution, directly or indirectly, in or into the United States except to Qualified Institutional Buyers (as defined in Rule 144A under the U.S. Securities Act of 1933, as amended (the "Securities Act")) and to persons outside the United States in compliance with Regulation S under the Securities Act. Nothing in this communication should be relied upon as a promise or representation as to the future, creates any adviser / client relationship between any recipient and HSBC nor constitutes an invitation or inducement to engage in investment activity nor an offer, solicitation or invitation by HSBC for the sale or purchase of securities or any of the assets, business or undertaking described therein.

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