New Issue: HSBC sells $7.24 million capped gears linked to iShares MSCI EM ETF

By Marisa Wong

Los Angeles, Sept. 1 – HSBC USA Inc. priced $7.24 million of 0% capped gears due Oct. 29, 2021 linked to the iShares MSCI Emerging Markets exchange-traded fund, according to a 424B2 filing with the Securities and Exchange Commission.

If the ETF return is greater than zero, the payout at maturity will be par plus 3 times the ETF return, subject to a maximum payout of par plus 16.8%. If the ETF return is less than zero, investors will have full exposure to the decline.

UBS Financial Services Inc. and HSBC Securities (USA) Inc. are the agents.

Issuer:	HSBC USA Inc.
Issue:	Capped gears
Underlying ETF:	iShares MSCI Emerging Markets ETF
Amount:	$7,241,800
Maturity:	Oct. 29, 2021
Coupon:	0%
Price:	Par of $10
Payout at maturity:	Par plus 3 times any ETF gain, capped at par plus 16.8%; full exposure to any losses
Initial price:	$45.34
Pricing date:	Aug. 26
Settlement date:	Aug. 31
Agents:	UBS Financial Services Inc. and HSBC Securities (USA) Inc.
Fees:	2%
Cusip:	40438J148

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