New Issue: HSBC sells $3.11 million buffered market participation securities tied to index basket

By Wendy Van Sickle

Columbus, Ohio, Aug. 17 – HSBC USA Inc. priced $3.11 million of 0% buffered market participation securities due Aug. 5, 2022 tied to a basket containing the S&P 500 index (70% weight), Russell 2000 index (15% weight) and iShares MSCI EAFE ETF (15% weight), according to a 424B2 filing with the Securities and Exchange Commission.

The payout at maturity will be par plus any basket gain, capped at par plus 15%.

Investors will receive par if the basket falls by up to 15% and will lose 1% for each 1% decline beyond 15%.

HSBC Securities (USA) Inc. is the agent.

Issuer:	HSBC USA Inc.
Issue:	Buffered market participation securities
Basket components:	S&P 500 index (70% weight), Russell 2000 index (15% weight) and iShares MSCI EAFE ETF (15% weight)
Amount:	$3,113,000
Maturity:	Aug. 5, 2022
Coupon:	0%
Price:	Par
Payout at maturity:	Par plus any basket gain, capped at par plus 15%; par if basket falls by up to 15%; 1% loss for each 1% decline beyond 15%
Initial levels:	3,271.12 for S&P 500, 1,480.427 for Russell and $62.05 for ETF
Buffer level:	85% of initial level
Pricing date:	July 31
Settlement date:	Aug. 5
Agent:	HSBC Securities (USA) Inc.
Fees:	0.5%
Cusip:	40438CQZ7

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