HSBC plans six-year annual income opportunity CDs on Asian tigers

By Jennifer Chiou

New York, Dec. 31 - HSBC Bank USA, NA plans to price annual income opportunity certificates of deposit due Jan. 26, 2016 linked to a basket of "Asian tigers," according to a term sheet.

The underlying companies are Baidu, Chunghwa Telecom, Cnooc, Icici Bank, LG Display, NTT, SK Telecom, Sony Corp., Tata Motors and Toyota Motors.

Interest is payable annually and will equal the average of the returns on the basket stocks, with a floor of zero. Each stock's return will be capped at 8% to 12%, with the exact cap to be set at pricing, and will have a floor of negative 30%.

The payout at maturity will be par.

The CDs will price on Jan. 21 and settle on Jan. 26.

HSBC Securities (USA) Inc. is the agent.

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