HSBC "Boosted Return" Notes, Series 1

Secondary market price*:
(less any applicable Early Trading Charges)
Last updated:

HSBC 'BOOSTED RETURN' NOTES, Series 1 (Principal at Risk) (the "Note Securities") are principal at risk Note Securities issued by HSBC. The return on the Note Securities is linked to the change in the value (positive or negative) of the S&P/TSX60® Index (the "Reference Index"). The performance (positive or negative) of the Reference Index will be measured from its Initial Index Level to the Final Index Level in order to calculate the Reference Index Return. The Reference Index Return will be used to determine the Maturity Payment Amount. No interest or other amount will be paid during the Term of the Note Securities.

Key features

Issue date: 29 July 2011
Maturity date: 29 July 2014
Note Term: 3 years
CUSIP #: CA40427HSK00
Currency: CAD
Boosted Return: 22.50%
Lower Barrier: -20
Selling Agent Fees: CAD 2.00 per Note Security

Highlights

  • Non-Principal Protected: 99% of an Investor's Principal investment is fully exposed
  • Private Placement: Available to Accredited Investors Only
  • Eligible for registered accounts

Maturity Payment Amount Scenarios:

Positive Reference Index Return

a) If the Reference Index Return is calculated to be equal to or greater than 0% and less than 22.50%, the Maturity Payment Amount per Note Security will be equal to the Principal Amount invested plus CAD22.50, according to the following formula:

Principal Amount + CAD22.50 per Note Security

b) If the Reference Index Return is calculated to be equal to or greater than 22.50%, Investors will be entitled to receive a Maturity Payment Amount per Note Security equal to the Principal Amount plus the product of

  • Principal Amount multiplied by
  • the Reference Index Return, according to the following formula:

Principal Amount + (Principal Amount x Reference Index Return)

Negative Reference Index Return

c) If the Reference Index Return is calculated to be less than 0% and greater than or equal to the Lower Barrier Return, an Investor will receive 100% of their Principal Amount invested per Note Security.

d) If the Reference Index Return is calculated to be less than the Lower Barrier Return, an Investor will receive a Maturity Payment Amount per Note Security equal to the Principal Amount plus the product of

  • Principal Amount multiplied by
  • the Reference Index Return, according to the following formula:

Principal Amount + (Principal Amount x Reference Index Return)

As a result, if the Reference Index Return is calculated to be less than the Lower Barrier Return, an Investor will lose 1% of the Principal Amount invested per Note Security for every 1% that the Reference Index Return is calculated to be less than zero. If the Reference Index Return is calculated to be less than the Lower Barrier Return, an Investor will receive less than their original Principal Amount invested, to a minimum of 1% of their Principal Amount.

Underlying asset(s)

Index Ticker Initial Index Level
S&P/TSX60® Index SPTSX60 769.00

Early trading charge/Secondary market

As a result of hold periods and resale restrictions under applicable securities laws, the Investors will not be able to sell their Note Securities within the first four (4) months following the Issue Date except in compliance with applicable securities laws. Thereafter, HSBC Securities intends, in normal market conditions, but is under no obligation, to use reasonable efforts to make a secondary price for the Note Securities as principal (which price will be determined in the sole discretion of HSBC Securities), and to obtain prices upon which third parties may be prepared to purchase Note Securities in any available secondary market, but reserves the right not to do so in the future in its sole discretion, without providing prior notice to the Investors. If a secondary market develops, it may be suspended or discontinued at any time without notice to Investors. After the 4 month hold period (30 November 2011) following the Issue Date, any sales of Notes prior to maturity may be subject to an "Early Trading Charge" which will be equal to a percentage of the Principal Amount and will be determined as follows:

Time period Early trading charge
30 November 2011 to and including 28 January 2012 2.00%
29 January 2012 to and including 28 July 2012 1.00%
29 July 2012 to and including the Maturity Date 0.00%

During the term of the Notes, you may inquire as to the net asset value of a Note or the level of the underlying Index and how it relates to the Variable Return that may be payable under the Notes, if any, by contacting HSBC at the number below.

Please see the Information Statement for further details or contact your investment advisor.

Additional information

Please do not hesitate to call us at +1 866 511 4722 or send us an e-mail for more information.

*The secondary market price for a Note Security, if available, represents the bid price of such Note Security as a percentage (%) of the original principal amount invested. The bid price stated is only as of the date indicated.