04 May 2018 -- HSBC HOLDINGS PLC NOTICE OF REDEMPTION to the holders of:US$3,800,000,000 8.00% Perpetual Subordinated Capital Securities Exchangeable at the Issuer’s Option into Non-Cumulative Dollar Preference Shares, Series 2 (NYSE:HSEB) (CUSIP No. 404280802; ISIN: US4042808026) presently outstanding. The Issuer hereby gives irrevocable notice to the holders of the Capital Securities, pursuant to Article XI, Section 11.04 of the Base Indenture dated 8 April 2008 and the Optional Redemption paragraph of the Global Capital Security, that it will exercise its option to redeem all of the outstanding Capital Securities on 4 June 2018 at a price equal to US$25 per US$25 in aggregate principal of Capital Security, together with any accrued and unpaid interest to the Redemption Date and any outstanding Deferred Coupon Payments (as defined in the section entitled “Description of the Capital Securities” in the prospectus supplement relating to the Capital Securities dated 17 June 2010. As at the date hereof, there are no outstanding Deferred Coupon Payments.This redemption is an Optional Redemption after the First Call Date (each as defined in the section entitled “Description of the Capital Securities” in the Prospectus Supplement). On the Redemption Date, subject to the Solvency Condition (as defined in the Indenture), the Redemption Price in respect of each Capital Security shall become due and payable and interest shall cease to accrue on redeemed Capital Securities with effect from the Redemption Date. Payments will be made in accordance with the procedures of the Depositary Trust Company and any other clearing system in which the Capital Securities are held. As at the date hereof, the Issuer satisfied the Solvency Condition.

QUANTUMONLINE.COM SECURITY DESCRIPTION:  HSBC Holdings plc, 8.00% Perpetual Subordinated Capital Securities Exchangeable at the Issuer's Option into Non-Cumulative Dollar Preference Shares, Series 2, liquidation preference $25 per share, redeemable at the issuer's option on or after 12/15/2015 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. The capital shares will pay distributions of 8.00% ($2.00) per annum quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date fixed by the board (NOTE: the ex-dividend date is at least 2 business days prior to the record date). The company may elect to defer any coupon payment on not less than 30 days' notice. No interest will accrue on any deferred coupon payment. The company may exchange the capital securities in whole (but not in part), at their option, for non-cumulative preference shares on any coupon payment date. The Preference Shares will have a liquidation preference of $25.00 per share and pay non-cumulative preferential dividends quarterly in arrears, if declared, of 8.00% of the liquidation preference per annum. The dividends of the preference shares will be non-cumulative and if the board of directors does not declare a dividend or the company fails to pay a dividend declared by the board for any quarterly dividend period, the holder will not be entitled to receive any dividend for that quarterly period and the undeclared or unpaid dividend will not accumulate. Any deferred coupon payments may be paid only through the Alternative Coupon Satisfaction Mechanism described in the prospectus. Dividends paid by these capital securities are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) but, since they are issued by a foreign company, are NOT eligible for the dividends received deduction for corporate holders (see page S-46 of the prospectus for further information). In regard to the payment of dividends and upon liquidation, the capital shares and the preference shares rank equally with other preference shares and senior to the common shares of the company. See the IPO prospectus for further information on the capital securities and the preference shares by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Distribution Dates	15% Tax Rate
NYSE Chart	8.00% $2	$25.00 $25.00	Called for 6/04/2018 None	Baa1 BBB 11/21/2017	3/15, 6/15, 9/15 & 12/15 Click for MW ExDiv Date Click for Yahoo ExDiv Date	YES

Company's Online Information Links

HOME PAGE:     http://www.hsbc.com/
Company's Investor Relations Information	Go to Investor Relations Information
Company's Online News Releases	Go to News Releases
Online Company Profile	Go to Online Profile

Company's Online SEC EDGAR Filings

Company's SEC EDGAR Filings

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Company's Email Address Links

Inv Rel Email Address	investor.relations.usa@us.hsbc.com
General Email Address	investorrelations@hsbc.com

Foreign Address and Phone Numbers

Address:   8 Canada Square, London E14 5HQ, United Kingdon
Main Phone Number	+44-20-7991-8888
Inv Rel Phone Number	+44-20-7991-8041

Address and Phone Numbers

U.S. Representative	HSBC North America Holdings Inc.
Address:   26525 N. Riverwoods Boulevard, Mettawa, IL 60045
Main Phone Number	224-544-4400
Fax Number	847-383-3331
Investor Relations	224-880-8008
Toll Free Phone Number	Unknown

CEO - Stuart Gulliver

FN - Iain Mackay