By Laura Lutz
Des Moines, Nov. 21 - HSBC USA Inc. priced $5 million of 0% performance securities due Nov. 21, 2012 linked to the HSBC Investable Climate Change index, according to a 424B2 filing with the Securities and Exchange Commission.
The HSBC Climate Change index consists of up to 50 stocks that derive more than 50% of reported total revenue from climate change-related activities, have a market capitalization of at least $1 billion and a six-month average daily trading volume of at least 0.5% of the minimum market capitalization threshold.
Climate change-related activities covers 19 industry sectors: solar; wind; geothermal/hydro; gas; biofuels; nuclear; integrated power; diversified renewables; agrochemicals; carbon trading; investment companies emphasizing one of the other 18 sectors; fuel efficiency autos, including mining or processing of platinum; energy efficient solutions; building insulation; fuel cells; power storage; water; and waste and pollution control.
If the final index level is at least the initial level, the payout at maturity will be par of $10 plus 110% of any gain on the index. Otherwise, the payout will be par minus the index decline.
UBS Financial Services Inc. is the underwriter.
| Issuer: | HSBC USA Inc.
|
| Issue: | Performance securities
|
| Underlying index: | HSBC Investable Climate Change index
|
| Amount: | $5 million
|
| Maturity: | Nov. 21, 2012
|
| Coupon: | 0%
|
| Price: | Par of $10
|
| Payout at maturity: | If final index level is at least initial level, par plus 110% of any index gain; otherwise, par minus index decline
|
| Initial index level: | 240.13
|
| Pricing date: | Nov. 19
|
| Settlement date: | Nov. 21
|
| Underwriter: | UBS Financial Services Inc.
|
| Fees: | 3%
|
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