HSBC Bank to price certificates of deposit linked to Dow Industrials

By Jennifer Chiou

New York, July 1 - HSBC Bank USA, NA plans to price 0% certificates of deposit with minimum return due July 28, 2017 linked to the Dow Jones Industrial Average, according to a term sheet.

The payout at maturity will be par plus the greater of the index return and the minimum return, which is expected to be 1% to 4% and will be set at pricing.

The CDs will be putable on July 29, 2011, July 31, 2012, July 31, 2013, July 31, 2014, July 31, 2015, and July 29, 2016 at their current market value minus an early redemption charge of 3% in year one, 2% in year two and 1% in year three. There is no charge in years four, five and six.

The CDs (Cusip: 40431GBX6) will price on July 22 and settle on July 28.

HSBC Securities (USA) Inc. is the agent.

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