HSBC CEO said artificial intelligence (AI) will destroy certain jobs and create new jobs as bank focuses on staff retraining. The CEO said it is important to have staff be on the :"AI journey with us, not fighting us, not resisting the change". HSBC Chief Executive Georges Elhedery said on Wednesday AI would destroy and create certain jobs in the financial industry, as the bank was focussed on retraining its workforce. Elhedery told a HSBC investor day event that staff needed to embrace AI-driven change rather than resist it and work with the bank on navigating the new technology.
Meanwhile, HSBC Holdings has raised A$1.4 billion ($1 billion) from a three-part Australian dollar bond sale on Tuesday after investors placed more than A$4.35 billion in orders, according to latest term sheet and note reviewed by Reuters.
HSBC priced A$550 million of six-year non-call five floating-rate notes, A$450 million of six-year non-call five fixed-to-floating-rate notes and A$400 million of 11-year non-call 10 fixed-to-floating-rate notes, according to a latest sheet
Orders topped A$1.715 billion for the six-year floating-rate notes, A$1.355 billion for the six-year fixed-to-floating-rate notes and A$1.285 billion for the 11-year fixed-to floating-rate notes, according to note before the pricing
The six-year floating-rate notes priced at 125 basis points over the three-month bank bill swap rate or BBSW. The six-year fixed-to-floating-rate notes priced at 125 basis points over semi-quarterly asset swaps and carry a 5.996% coupon.
The 11-year fixed-to-floating-rate notes priced at 162 basis points over semi-quarterly asset swaps and carry a 6.597% coupon. HSBC plans to use the proceeds for general corporate purposes
The notes are expected to be rated A3 by Moody's, A- by S&P and A+ by Fitch. ANZ, CBA, HSBC, Mizuho , NAB and Westpac are joint lead managers.
HSBC recently launched a dedicated $4 billion credit facility to support the global expansion of mainland Chinese companies involved in sustainable and transition technologies including clean power, data centres, electric vehicles and AI.
China, already the world's largest exporter of solar and battery technology, is leading the world in deployment of many green technologies as part of efforts to cut emissions, and has made a strategic push to grow markets and influence globally.
HSBC's move to create the Sustainability and Transition Credit Facility comes as the Iran war drives further demand for renewable energy such as wind and solar power that in many cases is cheaper than fossil fuels.
Global electric vehicle sales are set to pass 26 million in 2026, HSBC research shows, while electricity use from data centres could nearly double by 2030 to 945 terawatt hours, the International Energy Agency has estimated.
As part of the new facility, HSBC said in a statement that it would extend credit terms, streamline credit approvals and develop tailored solutions for eligible companies.
