Market Stabilization Announcement from HSBC for BSF Sukuk

HSBC Bank Initiates Market Stabilization for BSF Sukuk

HSBC Bank plc, serving as the Stabilisation Coordinator, has embarked on a significant initiative to stabilize the market surrounding BSF Sukuk Company Limited's latest securities offering. This venture comes with an aggregate nominal amount pegged to a USD benchmark, aiming to ensure investor confidence and security in this financial landscape.

Details of the Securities Offering

The fixed-rate securities associated with this offering are scheduled to mature on January 21, 2030. The specific offer price remains to be confirmed, fueling interest from various potential investors. HSBC is collaborating with a selection of prestigious financial institutions, including Abu Dhabi Commercial Bank, BSF Capital, Citi, Crédit Agricole CIB, Emirates NBD Capital, Goldman Sachs International, The Islamic Corporation for the Development of the Private Sector, Mashreq, Mizuho (NYSE: MFG), and SMBC during this vital stabilization phase.

Stabilization Period and Activities

The stabilization efforts initiated by HSBC began recently and are projected to continue until February 20, 2025. Throughout this timeframe, involved stakeholders may partake in transaction activities aimed at supporting and stabilizing the market price of these securities. Among the strategies being considered, actions may include over-allotment of securities, allowing a buffer of up to 5% of the aggregate nominal value, creating a supportive price level against natural market fluctuations.

Legal Considerations and Qualifications

It is crucial to note that although these stabilization actions are proposed, no assurance can be given regarding the execution of these measures; they can be suspended if deemed necessary. All activities will strictly comply with relevant legal regulations and guidelines to maintain market integrity.

Intended Audience for the Offering

This pre-stabilization notice serves primarily as an informative disclosure. It is expressly not an invitation or an offer to purchase, subscribe to, or otherwise engage with the securities from the Issuer. The securities are not intended for sale in the United States, as they have not been registered under the U.S. Securities Act of 1933 and are ineligible for sale without appropriate registration or exemption.

Targeting Qualified Investors

The announcement is tailored to attract qualified investors located within the European Economic Area, adhering to the Prospectus Regulation. It also targets professional investors and high-net-worth individuals in the United Kingdom, in accordance with the provisions outlined in the Financial Services and Markets Act 2000, ensuring that the right audience receives this pertinent information.

Conclusion: A Step Forward in Financial Offering

HSBC's proactive measures represent a significant step toward maintaining an orderly market environment for BSF Sukuk Company Limited's securities. By bringing together reputable partners and focusing on potential market stabilization, HSBC not only protects its interests but also fosters an atmosphere of trust and confidence among investors. As global markets evolve, such strategic initiatives are vital for sustaining investor interest and encouraging healthy financial ecosystems.

Frequently Asked Questions

What is the purpose of the market stabilization by HSBC?

The market stabilization aims to maintain the pricing levels of BSF Sukuk securities during the stabilization period, ensuring investor confidence.

Who are the partners involved in this stabilization effort?

HSBC collaborates with several major financial entities including Abu Dhabi Commercial Bank, Citi, and Goldman Sachs, among others, to facilitate this stabilization.

What is the maturity date of the securities?

The securities linked to this offering are due to mature on January 21, 2030.

Are these securities available for U.S. investors?

No, the securities cannot be offered or sold in the United States as they have not been registered under U.S. law.

Who can invest in these securities?

The targeted investors include qualified individuals within the European Economic Area and professional investors in the United Kingdom, focusing on high-net-worth individuals.

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