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

By Angela McDaniels

Tacoma, Wash., Oct. 3 - HSBC Bank USA, NA plans to price 0% Far East opportunity certificates of deposit due Oct. 25, 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 Jan. 21, April 21, July 21 and Oct. 21 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. There is no charge in years five through seven.

The trade date for the CDs (Cusip: 40431GZB8) is Oct. 20, the index set date is Oct. 21, and the settlement date is Oct. 26.

HSBC Securities (USA) Inc. is the agent.

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