HSBC plans four-year accumulated return CDs linked to S&P 500 index

By Marisa Wong

Morgantown, W.Va., March 19 – HSBC Bank USA, NA plans to price 0% accumulated return certificates of deposit due March 28, 2022 linked to the S&P 500 index, according to a term sheet.

The payout at maturity will be par plus the sum of the index’s returns on each of the 16 quarterly observation dates, subject to a minimum return of 2%.

The return in each quarter will be measured from the immediately preceding observation date to the current observation date and can be positive or negative, subject to a cap that is expected to be 3.1% to 3.6% per quarter and will be set at pricing.

HSBC Securities (USA) Inc. is the agent. Incapital LLC is distributor.

The CDs will price March 23.

The Cusip number is 40434YWE3.

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