HSBC plans 0.5%-1% income and performance CDs tied to BRIC currencies

By Angela McDaniels

Tacoma, Wash., July 6 - HSBC Bank USA, NA plans to price income and performance certificates of deposit due July 27, 2016 linked to the performance of a basket of currencies relative to the dollar, according to a term sheet.

The basket includes equal weights of the Brazilian real, the Russian ruble, the Indian rupee and the Chinese renminbi.

The CDs will carry a coupon of 0.5% to 1% that will be payable annually. The exact rate will be set at pricing.

The payout at maturity will be par plus the basket return, subject to a minimum payout of par.

The CDs will be putable annually. Investors will receive the current market value of the CDs minus an early redemption charge of 2.5% in year one, 1.5% in year two and 0.5% in year three.

The trade date for the CDs is July 21. They will price July 22 and settle July 27.

HSBC Securities (USA) Inc. is the agent.

The Cusip number is 40431GUQ0.

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