HSBC plans digital coupon notes linked to deliverable Chinese renminbi

By Angela McDaniels

Tacoma, Wash., March 5 - HSBC USA Inc. plans to price one-year digital coupon notes denominated in deliverable Chinese renminbi and linked to the performance of the renminbi relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The price will be an amount in dollars equal to RMB 10,000 divided by the initial spot price.

The payout at maturity will be an amount in dollars equal to the final settlement value divided by the final spot rate.

If the currency return is greater than or equal to 1.5%, the final settlement value will be RMB 10,000 plus the digital return, which is expected to be at least 5% and will be set at pricing. If the currency return is less than 1.5%, the final settlement value will be par.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price and settle in March.

The Cusip number is 40432XCP4.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.