New Issue: HSBC prices $747,000 performance notes tied to five currencies versus dollar

By Angela McDaniels

Tacoma, Wash., June 28 - HSBC USA Inc. priced $747,000 of 0% performance notes due June 29, 2012 linked to an emerging currency basket, according to a 424B2 filing with the Securities and Exchange Commission.

The basket includes the Brazilian real, Russian ruble, Indian rupee, Indonesian rupiah and Chinese renminbi, equally weighted and each against the dollar.

If the basket return is positive, the payout at maturity will be par plus the greater of the basket return and 5%. Investors will be exposed to any basket decline, subject to a minimum payout of $950 per $1,000 principal amount.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Performance notes
Underlying currencies:	Brazilian real, Russian ruble, Indian rupee, Indonesian rupiah and Chinese renminbi, equally weighted
Amount:	$747,000
Maturity:	June 29, 2012
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus greater of basket return and 5% if basket appreciates relative to dollar; exposure to any basket decline, subject to floor of 95% of par
Initial exchange rates:	1.7907 for real; 31.1048 for ruble; 46.2400 for rupee; 9,048 for rupiah; 6.8100 for renminbi
Pricing date:	June 24
Settlement date:	June 29
Agent:	HSBC Securities (USA) Inc.
Fees:	2.07%
Cusip:	4042K02W4

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