HSBC plans digital notes linked to basket of real, ruble, rupee

By Marisa Wong

Morgantown, W.Va., April 20 – HSBC USA Inc. plans to price 0% digital notes due Oct. 26, 2018 linked to the performance of an equally weighted basket of three currencies relative to the dollar, according to an FWP filing with the Securities and Exchange Commission.

The basket consists of the Brazilian real, the Russian ruble and the Indian rupee.

If the basket return is positive or zero – meaning that the basket currencies, as a whole, strengthen or remain unchanged relative to the dollar – the payout at maturity will be par plus 18%.

If the basket return is negative but greater than or equal to negative 5%, the payout will be par.

If the basket return is less than negative 5%, investors will receive $950 per $1,000 principal amount.

HSBC Securities (USA) Inc. is the agent. JPMorgan Chase Bank, NA and J.P. Morgan Securities LLC are placement agents.

The notes will price April 21.

The Cusip number is 40433U3P9.

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