HSBC plans to price Far East opportunity CDs linked to four indexes

By Angela McDaniels

Tacoma, Wash., Sept. 7 - HSBC Bank USA, NA plans to price 0% Far East opportunity certificates of deposit due Sept. 27, 2018 linked to a basket of indexes, according to a term sheet.

The basket includes equal weights of the Hang Seng index, the TWSE index, the MSCI Singapore Free index and the Kospi 200 index.

The payout at maturity will be par plus the average of the basket indexes' returns, subject to a minimum payout of par.

The final level of each index will be the average of its closing levels on March 22, June 22, Sept. 22 and Dec. 22 of each year during the life of the CDs.

The issuer said it is generally willing to repurchase CDs from depositors at any time. It will pay the current market value of the CDs minus an early withdrawal charge of 3.5% in year one, 2.5% in year two, 1.5% in year three and 0.5% in year four.

The trade date for the CDs (Cusip: 40431GYC7) is Sept. 21, the index set date is Sept. 22, and the settlement date is Sept. 27.

HSBC Securities (USA) Inc. is the agent.

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