NORTON Rose and Linklaters have landed major roles on a £12.5 billion (US$ 17.7 billion) rights issue.
The deal, which sees Norton Rose advising key client HSBC, is the largest ever by a FTSE 100 company, and is aimed at strengthening the bank’s balance sheet after its profits dropped to £6.5bn this year. The bank is trying to restructure its business to scale back its US consumer finance business.
The capital-raising is the latest in a string of rights issues from cash-strapped financial institutions, despite HSBC being one of the most resilient performers throughout the credit crunch.
Cleary Gottlieb Steen & Hamilton is advising HSBC on US issues, while Linklaters is advising underwriters JPMorgan and Goldman Sachs.
In addition to its London and Hong Kong offices, the international transaction team involved Norton Rose Group’s Amsterdam, Athens, Dubai, Frankfurt, Paris, Riyadh and Shanghai offices. Correspondent lawyers in a number of other jurisdictions were also involved.