HSBC to price annual income opportunity CDs linked to Asian titans

By Toni Weeks

San Diego, Aug. 3 - HSBC Bank USA, NA, New York Branch plans to price annual income opportunity CDs with auto cap due Aug. 28, 2017 linked to a basket of 10 stocks, according to a term sheet.

The basket includes the common stocks of Aluminum Corp. of China Ltd., Baidu, Inc., China Unicom, Chunghwa Telecom Co., Ltd., CNOOC Ltd., Icici Bank Ltd., Infosys Technologies Ltd., LG Display Co. Ltd., SK Telecom Co., Ltd. and Tata Motors Ltd.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.

If a basket stock's return is zero or positive, its performance will be fixed at 6% to 9%. The exact auto cap rate will be determined at pricing. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 40431GWG0) are expected to price Aug. 23 and settle Aug. 26.

HSBC Securities (USA) Inc. is the agent.

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