HSBC Bank plans to price 10-year fixed-to-floating CDs linked to CPI

By Marisa Wong

Madison, Wis., Dec. 15 - HSBC Bank USA, NA plans to price principal-protected fixed-to-floating inflation-linked certificates of deposit due Jan. 4, 2021 tied to the Consumer Price Index, according to a term sheet.

The coupon will be fixed at 3% per year for the first six months. After that, the coupon will equal 1.5 times the year-over-year change in the CPI, subject to a cap of 5% and a floor of 0%. Interest is payable monthly.

The payout at maturity will be par.

The CDs (Cusip: 40431GKC2) will settle on Jan. 4.

HSBC Securities (USA) Inc. is the underwriter.

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