Harmful investments by HSBC June 2009

Loans

� In July 2005, HSBC participated for the sum of € 85 million in a € 3 billion revolving credit to EADS. EADS, the second largest European arms producer, is involved in the production of nuclear weapons.

� In July 2006, HSBC participated for an amount of € 20 million in a € 336.1

million revolving credit to Freeport McMoran and PT Freeport Indonesia, its operating unit in Indonesia. In March 2007, HSBC participated for € 34 million in a € 1.1 billion revolving credit and for € 227 million in a € 7.5 billion loan to Freeport McMoran. Freeport releases 230,000 tonnes of polluted rubble into the local river system each day. Opponents of the mine are treated harshly by the military forces bribed by the company.

� The HidroAysén hydropower project is a joint venture between the Chilean companies Colbún and Endesa Chila. In August 2008, HSBC participated for the sum of € 22 million in a € 267 million loan to Colbún. At the end of 2008, Endesa Chile had long-term debt outstanding with HSBC for a sum of € 16 million. The HydroAysén project plans to construct 5 hydroelectric centers with dams which will displace families, threaten critically endangered species and disrupt sustainable income to Patagonia’s local communities.

� In March 2005, HSBC participated for a sum of US$ 60 million in a US$ 1.25

billion five year revolving credit to Textron. In April 2006 and April 2007, the revolving credit was amended. HSBC participated for US$ 60 million in both amended credits. In April 2006, HSBC participated for a sum of US$ 90 million in a US$ 1.75 billion credit to Textron Financial Corporation, a wholly owned subsidiary of Textron Inc. In April 2007, HSBC participated for an amount of US$ 90 million in amending this credit. Textron produces cluster munitions.

Issues of shares

� In March 2007, HSBC underwrote the issuing of shares of Freeport McMoran worth € 4.3 billion for an amount of € 32 million.

� In April 2009, Textron issued shares for an amount of US$ 217.4 million. HSBC

underwrote this issue for a sum of US$ 7.7 million.

Issues of bonds

� In September 2005, EADS launched a € 3 billion Euro Medium Term Note (EMTN) Programme, replacing the € 3 billion EMTN from February 2003. The programme enables the company to issue bonds on the European capital market on a regular basis and without too many regulatory requirements. HSBC is one of the selected dealers for this programme.

� HSBC, is selected as a dealer for the Billet de Trésorerie. This € 2 billion

French domestic commercial paper program enables EADS to to issue short-term bonds with a tenor of maximum 1 year on the French capital market on a regular basis and without too many regulatory requirements.

� In March 2007, Freeport McMoran issued notes for an amount of € 4.5 billion.

HSBC participated in this issuing for € 98 million. � In June 2008, Suncor Energy issued bonds worth € 1.3 billion. HSBC underwrote

this issuing for € 38.6 million. Suncor Energy is one of the largest companies in the Canadian tar sands industry. Oil extracted from tar sands has a disastrous impact on the environment.

� Between January 2007 and April 2009, HSBC underwrote six series of bonds for

Textron, worth US$ 255 million, US$ 125 million, US$ 50 million, US$ 275 million, US$ 300 million and US$ 540 million. HSBC underwrote these issues for US$ 85 million, US$ 125 million, US$ 50 million, US$ 275 million, US$ 100 million and US$ 14.625 million respectively.

� HSBC is selected as a dealer for Total’s European medium-term programme.

Thanks to this programme, the company can regularly and easily issue bonds on the European market. Between February 2006 and May 2009, HSBC arranged a series of bond issues for Total, worth € 146 million, € 100 million, € 301 million, € 62 million, € 950 million and € 550 million respectively. HSBC underwrote this issues for € 73 million, € 33 million, € 75 million, € 31 million, € 475 million and € 275 million respectively. Total is involved in gas extraction which supports the Burmese junta. The laying of the pipeline and the surrounding infrastructure led to serious human rights abuses.

� In March 2009, HSBC arranged an issuing of bonds for Wal-Mart, worth € 1.06

billion. HSBC underwrote this issue for € 148.4 million. Between June 2005 and January 2009, HSBC underwrote another five issues of bonds, for € 65.6 million, € 30.7 million, € 25.3 million, € 26.1 million and € 7.7 million respectively. The US supermarket chain Wal-Mart censors trade union information, sacks members of trade unions, and even closes entire stores to block the unionisation of the workforce.

Shareholdings

HSBC owns or manages shares in ten of the researched companies, for a total value of US$ 856,78 million.

Dongfeng US$ 12,38 million

EADS US$ 5,94 million

Freeport McMoRan US$ 8,18 million

Lundin Petroleum US$ 0,02 million

Petrochina US$ 265,25 million

Suncor Energy US$ 12,95 million

Textron US$ 0,93 million

Total S.A. US$ 477,25 million

Vedanta Resources US$ 12,91 million

Wal-Mart Stores US$ 60,97 million

Sources: European banks financing controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009 ; Shareholdings of some European Banks in controversial companies, Profundo (research paper for Netwerk Vlaanderen), June 2009.