HSBC plans 0% access notes linked to Investable Climate Change index

By Laura Lutz

Des Moines, Jan. 7 - HSBC USA Inc. plans to price 0% access notes due Jan. 31, 2013 linked to the HSBC Investable Climate Change Total Return index, according to an FWP filing with the Securities and Exchange Commission.

The HSBC Climate Change index consists of up to 50 stocks that derive more than 50% of reported total revenue from climate change-related activities, have a market capitalization of at least $1 billion and have a six-month average daily trading volume of at least 0.5% of the minimum market capitalization threshold.

Climate change-related activities covers 19 industry sectors: 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, including mining or processing of platinum; energy efficient solutions; building insulation; fuel cells; power storage; water; and waste and pollution control.

Investors will be able to exchange their notes early on Jan. 30, 2009, Jan. 29, 2010, Jan. 31, 2011 and Jan. 31, 2012.

The payout at maturity or upon early exchange will be 98.75% of par plus the index return and minus an annual fee of 1.4%.

The notes are expected to price on Jan. 28 and settle on Jan. 31.

HSBC Securities (USA) Inc. is the underwriter.

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