By Wendy Van Sickle
Columbus, Ohio, April 6 – HSBC USA Inc. priced $21,000 of 0% digital barrier notes due April 7, 2025 linked to the performance of the AI Powered US Equity Adjusted Total Return index, according to a 294B2 filing with the Securities and Exchange Commission.
The index tracks the total return of a notional portfolio of shares selected by a rules-based equity strategy powered by IBM Watson, which utilizes artificial intelligence techniques to process market signals. The index is subject to an adjustment factor of 5% per annum, accrued and deducted on a daily basis, and a monthly rebalancing fee of 0.01%. The index will only increase if the portfolio’s aggregate performance exceeds 5%.
If the index finishes flat or gains, the payout at maturity will be the greater of par plus 29% and par plus the index gain.
If the index declines up to 25%, the payout at maturity will be par. Otherwise, investors will lose 1% for every 1% of index decline from its initial level.
HSBC Securities (USA) Inc. is the agent.
| Issuer: | HSBC USA Inc.
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| Issue: | Digital barrier notes
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| Underlying index: | AI Powered US Equity Adjusted Total Return index
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| Amount: | $21,000
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| Maturity: | April 7, 2025
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| Coupon: | 0%
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| Price: | Par
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| Payout at maturity: | If the index finishes flat or gains, the greater of par plus 29% and par plus the index gain; if the index declines up to 25%, par; otherwise, full exposure to index decline from initial level
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| Initial index level: | 6,496.33
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| Barrier level: | 75% of initial level
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| Pricing date: | March 31
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| Settlement date: | April 5
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| Agent: | HSBC Securities (USA) Inc.
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| Fees: | 0.5%
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| Cusip: | 40439JH81
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