HSBC plans seven-year annual income opportunity CDs on global titans

By Jennifer Chiou

New York, Nov. 2 - HSBC USA Inc. plans to price annual income opportunity CDs with auto cap due Nov. 29, 2018 linked to a basket of global industry titans, according to a pricing sheet.

The basket includes the common stocks or American Depositary Receipts of ABB Ltd., Amgen Inc., Baidu, Inc., Barrick Gold Corp., BP plc, Canon Inc., Duke Energy Corp., Ecopetrol SA, Elan Corp plc, Grupo Televisa SA, HDFC Bank Ltd. and Marvell Technology Group Ltd.

Interest is payable annually and will equal the average of the performances of the basket stocks, subject to a floor of zero.

If a basket stock's return is zero or positive, its performance will be fixed at 7% to 10%. The exact auto cap rate will be determined at pricing. If a basket stock's return is negative, its performance will be the greater of the stock return and negative 30%.

The payout at maturity will be par.

The CDs (Cusip: 40431GB40) are expect to price on Nov. 23 and settle on Nov. 29.

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

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