HSBC Holdings PLC will launch a share buyback program of 50 U.S. cents per ordinary share for a maximum consideration of $1 billion.
The share repurchase, which is aimed at reducing HSBC's outstanding shares, will commence Aug. 6 and end no later than Oct. 18, subject to regulatory approval.
The British lender entered into an irrevocable, nondiscretionary agreement with Morgan Stanley & Co. International PLC, under which the latter will enable the purchase of ordinary shares as principal and sell them to HSBC.
HSBC noted that the maximum number of ordinary shares that may be repurchased under the buyback program is 2,003,673,053. The purchase of the shares will be carried out on the London Stock Exchange.
The bank first announced Aug. 5 its plans to buy back shares as it reported a year-over-year rise in first-half profit attributable to shareholders of the parent company to $8.51 billion from $7.17 billion.