HSBC Bank USA to price CDs linked to HSBC Investable Climate Change index

By Angela McDaniels

Tacoma, Wash., July 30 - HSBC Bank USA, NA plans to price 0% certificates of deposit due Aug. 29, 2014 linked to the HSBC Investable Climate index, according to a term sheet.

The index measures the performance of up to 50 stocks that derive more than 50% of reported total revenue from climate change-related activities, including solar, wind, geothermal/hydro, gas, biofuels, nuclear, integrated power, diversified renewables, agrochemicals, carbon trading, investment companies emphasizing one of the other 18 sectors, fuel efficiency autos, energy-efficient solutions, waste and pollution control, building insulation, fuel cells, power storage and water.

The payout at maturity will be par plus 100% to 103% of any index gain, with the exact participation rate to be set at pricing. Investors will receive at least par.

The final index level will be equal to the average of the index's closing levels on Nov. 26, Feb. 26, May 26 and Aug. 26 of each year.

The CDs will be putable at any time. Investors will receive the then-current market value of the CDs minus a fee, which will be 3% during year one, 2% during year two, 1% during year three and zero for the remainder of the term.

The CDs will price on Aug. 22 and settle on Aug. 29.

HSBC Securities (USA) Inc. will be the agent.

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