HSBC Holdings PLC

HSBC Holdings plc is a British multinational bank holding and financial services company headquartered in London. Through its subsidiaries, HSBC conducts banking operations in 64 countries and territories. In 2022, the company generated $55.3 billion in revenue, and, as of 2023, it is the eighth-largest bank in the world based on total assets.

HSBC has been one of several major financiers of private prison and immigrant detention companies, having provided revolving lines of credit and bond underwriting services to CoreCivic and GEO Group. While other major private prison financiers announced in 2019 that they would exit their relationships with private prison companies, HSBC has made no such announcement.

In 2022, GEO Group entered into a new credit agreement, replacing a previous agreement that consisted of a $900 million revolving line of credit and a $792 million term loan. HSBC was part of the previous agreement, having provided an undisclosed amount of money to the deal. Unlike in previous years, public disclosures regarding the 2022 agreement only named the administrative agent, Alter Domus. While other lenders are also involved, they were not named. Therefore, HSBC's current involvement is unclear.

The bank's known past involvement includes:

• In April 2013, CoreCivic issued two sets of bonds—one set totaling $325 million, with a maturity date of 2020, and another set totaling $350 million, with a maturity date of 2023. As part of a syndicate of banks, HSBC underwrote both sets of bonds; however, public disclosures do not state the proportion of bonds underwritten by the bank.
• In September 2014, GEO Group issued $250 million of bonds, with a maturity date of 2024. As part of a syndicate of banks, HSBC underwrote $18.8 million worth of these bonds.
• In April 2016, GEO Group issued $350 million of bonds, with a maturity date of 2026. As part of a syndicate of banks, HSBC underwrote $14 million worth of these bonds.
• In August 2016, HSBC subsidiary HSBC Bank Australia extended a Letter of Offer to GEO Group, establishing a bank guarantee facility of approximately $78.1 million for work related to Ravenhall Correctional Centre, a 1,300-bed private prison in Australia. The deal allowed GEO Group to provide letters of credit to assure the performance of certain obligations related to the development and operation of the prison. (In September 2022, GEO Group sold its interest in Ravenhall and its shares in its relevant Australian subsidiaries to a third party. As part of the sale, the company transferred its debt to the buyer.)