HSBC plans seven-year global opportunity CDs linked to three indexes

By Jennifer Chiou

New York, Nov. 29 - HSBC Bank USA, NA plans to price 0% global opportunity certificates of deposit due Dec. 28, 2017 linked to a basket of indexes, according to a term sheet.

The equally weighted basket includes the Euro Stoxx 50 index, the Hang Seng index and the S&P 500 index.

The payout at maturity will be par plus the basket return, subject to a floor of par.

The final level of each index used to determine the basket return will be the average of its closing levels on the 22nd of May, June, September and December of each year during the life of the CDs.

The CDs will be putable on Dec. 30, 2011, Dec. 31, 2012, Dec. 31, 2013, Dec. 31, 2014, Dec. 31, 2015 and Dec. 30, 2016. Investors will receive the current market value of the CDs minus a redemption charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and 0.5% in year four. There is no charge in years five through seven.

The CDs (Cusip: 40431GJJ9) will price on Dec. 21 and settle on Dec. 28.

HSBC Securities (USA) Inc. is the agent.

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