1. Product Overview

The HSBC Holdings PLC Dual-Currency Bond is designed to offer investors a high-yield option with asset backing and currency flexibility. This bond supports HSBC’s global operations and provides a stable investment vehicle for income-seeking investors.

2. Key Features and Benefits

• Fixed Interest Rate: This bond offers a fixed interest rate of 8% per annum.
• Maturity: This is a perpetual bond with 12-month renewable terms, providing flexibility with no fixed maturity date.
• Currency Options: Available in both USD and AUD, allowing investors to choose the currency that best suits their portfolio needs.
• Asset-Backed: Fully backed by HSBC Holdings’ robust asset base, providing security and stability.
• One-Year Buy-Back Guarantee: For added client assurance, we offer a one-year buy-back guarantee, allowing investors to sell the bond back at the original purchase price within the first 12 months. This protects against short-term market fluctuations and offers risk mitigation for new investors.

3. Issuer Information

HSBC Holdings PLC is one of the world’s largest banking and financial services organizations, with a strong international presence and a solid asset base. This bond is part of HSBC’s efforts to raise capital for ongoing global operations, backed by a diverse portfolio of financial assets.

4. Investment Management by 4 Pillars Adviser Services Pty Ltd

All transactions, including purchasing and selling, will be managed through 4 Pillars Adviser Services Pty Ltd, which acts on behalf of HSBC for this product. Investors can buy or sell their bonds through 4 Pillars at face value at any time.

5. Fees and Costs

• Standard Costs: There are no fees for purchasing or redeeming the bond through 4 Pillars Adviser Services when held for over one year.
• Early Exit Fee: If you redeem within the first year, a fee of 0.25% of the withdrawn amount will apply, covering early exit handling costs. The one-year buy-back guarantee exempts this fee if redeemed within the first year at the original purchase price.

6. Investor Suitability

This bond is suitable for investors seeking a steady income stream and the security of an asset-backed investment. The dual-currency option, perpetual structure, and one-year buy-back guarantee provide added flexibility and assurance for both conservative and income-oriented investors.

7. Tax Implications

HSBC Holdings has already paid a flat corporate tax on the bond’s income, ensuring that investors do not face double taxation on their interest earnings. However, investors may still have Australian or international tax obligations based on currency choice and residence. Consultation with a tax professional is advised for specific tax considerations.

8. Risks

Investing in the HSBC Dual-Currency Perpetual Bond carries certain risks, though HSBC’s extensive asset backing offers stability. Key risks include:

• Interest Rate Risk: Although the bond offers a fixed rate, shifts in broader market interest rates could impact its attractiveness if sold before the 12-month renewal.
• Credit Risk: As with any corporate bond, there is credit risk; however, HSBC’s global asset portfolio and established reputation significantly mitigate this risk.
• Currency Risk: Investors should be aware of the potential for currency fluctuations if switching between USD and AUD.

9. Application and Redemption Process

• Application: To invest, complete the application form available through 4 Pillars Adviser Services Pty Ltd, which manages all transactions for HSBC bonds.
• Redemption: Investors can sell the bond back to 4 Pillars Adviser Services at face value anytime. If redeemed within the first year under the one-year buy-back guarantee, the original purchase price is returned without an early exit fee.

10. Legal and Regulatory Information

This Product Disclosure Statement complies with relevant Australian and international securities regulations. $ Pillars Adviser Services & HSBC Holdings PLC ensures compliance with asset-backed bond guidelines, safeguarding investment value.

11. Contact Information

For further information or assistance, please contact 4 Pillars Adviser Services Pty Ltd:

• Email: info@4pillarsadviserservices.com