New Issue: HSBC prices $75,650 trigger performance notes linked to Vanguard FTSE Emerging Markets

By Angela McDaniels

Tacoma, Wash., Feb. 1 – HSBC USA Inc. priced $75,650 of 0% trigger performance securities due Jan. 29, 2021 linked to the Vanguard FTSE Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is positive, the payout at maturity will be par of $10 plus 162% of the ETF return. Investors will receive par if the ETF declines by 25% or less and will be fully exposed to the ETF’s decline from its initial share price if it falls by more than 25%.

HSBC Securities (USA) Inc. and UBS Financial Services Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Trigger performance securities
Underlying fund:	Vanguard FTSE Emerging Markets ETF
Amount:	$75,650
Maturity:	Jan. 29, 2021
Coupon:	0%
Price:	Par of $10.00
Payout at maturity:	If ETF return is positive, par plus 162% of fund return; par if final share price is less than or equal to initial share price but greater than trigger price; full exposure to fund’s decline from initial share price if final share price is less than trigger price
Initial share price:	$29.50
Trigger price:	$22.13, 75% of the initial price
Pricing date:	Jan. 26
Settlement date:	Jan. 29
Agents:	HSBC Securities (USA) Inc. and UBS Financial Services Inc.
Fees:	0.5%
Cusip:	40434K180

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