HSBC plans to price barrier enhanced participation notes on two sector ETFs

By Emma Trincal

New York, July 13 – HSBC USA Inc. plans to price 0% barrier enhanced participation notes due July 31, 2025 linked to the least performing of the Utilities Select Sector SPDR fund and the Financial Select Sector SPDR fund, according to an FWP filing with the Securities and Exchange Commission.

If the return of each exchange-traded fund is positive, the payout at maturity will be par plus at least 250% of the least-performing ETF’s return. The exact participation rate will be set at pricing.

If the return of the least-performing ETF is less than or equal to zero but greater than or equal to negative 40%, the payout will be par.

If the return of either ETF is less than 60% of its initial level, investors will lose 1% for every 1% that the least-performing fund declines from its initial level.

HSBC Securities (USA) Inc. is the underwriter.

The notes will price on July 28 and settle on July 31.

The Cusip number is 40438CQG9.

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