New Issue: HSBC sells $425,000 buffered digital notes linked to two ETFs

By Taylor Fox

New York, Nov. 2 – HSBC USA Inc. priced $425,000 of 0% buffered digital notes due Oct. 5, 2023 linked to the SPDR S&P Oil & Gas Exploration & Production ETF and the Financial Select Sector SPDR fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the final level of the index is greater than or equal to 80% of its initial level, the payout at maturity will be par plus 38%. Otherwise, investors will lose 1% for every 1% that the index declines beyond 20%.

HSBC Securities (USA) Inc. is the underwriter.

Issuer:	HSBC USA Inc.
Issue:	Buffered digital notes
Underlying index:	SPDR S&P Oil & Gas Exploration & Production ETF and the Financial Select Sector SPDR Fund
Amount:	$425,000
Maturity:	Oct. 5, 2023
Coupon:	0%
Price:	Par
Payout at maturity:	If index finishes at or above 80% of initial level, par plus 38%; otherwise, 1% loss for every 1% decline beyond 20%
Initial index level:	$42.07 for Oil & Gas and $24.07 for Financial Select
Buffer levels:	80% of initial levels
Pricing date:	Sept. 30
Settlement date:	Oct. 5
Underwriter:	HSBC Securities (USA) Inc.
Fees:	None
Cusip:	40438CWZ0

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