HSBC to price annual income opportunity CDs linked to Asian tigers

By Angela McDaniels

Tacoma, Wash., April 5 - HSBC Bank USA, NA plans to price annual income opportunity certificates of deposit due April 28, 2016 linked to a basket of stocks, according to a term sheet.

The basket includes Baidu Inc., Canon Inc., China Unicom, Chunghwa Telecom Co., Ltd., Cnooc Ltd., Icici Bank Ltd., LG Display Co. Ltd., Nippon Telegraph and Telephone Corp., SK Telecom Co., Ltd. and Tata Motors Ltd.

Interest is payable in April of each year 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 be putable on May 30, 2011, May 31, 2012, May 31, 2013, May 29, 2014 and May 29, 2015. Investors will receive the current market value minus an early 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 year five.

The CDs will price April 23 and settle April 28.

HSBC Securities (USA) Inc. is the agent.

© 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.