HSBC plans to price global opportunity CDs linked to three indexes

By Angela McDaniels

Tacoma, Wash., Dec. 6 - HSBC Bank USA, NA plans to price 0% global opportunity certificates of deposit due Dec. 7, 2018 linked to a basket of indexes, according to a term sheet.

The basket includes equal weights of the Dow Jones industrial average, the Euro Stoxx 50 index and the TWSE 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% in year one, 2% in year two and 1% in year three. There is no charge in years four through seven.

The trade date for the CDs (Cusip: 40431GE47) is Dec. 21, the index set date is Dec. 22, and the settlement date is Dec. 27.

HSBC Securities (USA) Inc. is the agent.

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