HSBC prepares to pay up for jumbo AT1

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HSBC prepares to pay up for jumbo AT1

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General view of Canary Wharf at peak hour in London on October 31, 2017. Several bank groups, like HSBC and Citigroup, threaten to leave the financial district of Canary Wharf and the City. (Photo by Alberto Pezzali/NurPhoto/Sipa USA) | NurPhoto/SIPA USA/PA Images

HSBC came to the market on Monday with two tranches of additional tier one (AT1) capital, and announced initial price thoughts with a hefty new issue premium. Spain's Ibercaja Banco also announced a mandate for the instrument in euros.

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