HSBC plans barrier rebate CDs linked to Market Vectors Gold Miners ETF

By Angela McDaniels

Tacoma, Wash., Aug. 2 - HSBC Bank USA, NA plans to price 0% barrier rebate certificates of deposit due Aug. 28, 2013 linked to the Market Vectors Gold Miners exchange-traded fund, according to a term sheet.

If the fund's closing share price remains at or below the knock-out barrier - 140% of the initial share price - throughout the life of the CDs, the payout at maturity will be par plus the fund return, subject to a floor of par.

If the shares close above the barrier during the life of the CDs, the payout at maturity will be par plus a fixed return of 1% to 3% that will be set at pricing.

The CDs will be putable on Aug. 30, 2011 and Aug. 30, 2012. Investors will receive the market value of the CDs.

The CDs (Cusip: 40431GDH9) will price Aug. 23 and settle Aug. 26.

HSBC Securities (USA) Inc. is the agent.

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