HSBC Boosted Return Range Deposit Notes, Series 2 are principal protected deposit notes issued by HSBC. If held to maturity, the Notes will pay:
- 100 per cent of the Principal Amount invested; and
- A Contingent Coupon, if payable, of 30 per cent of the Principal Amount or CAD30.00 per Note, if a 'kick-out event' does NOT occur during the observation period. A kick-out event occurs if, on any scheduled trading day during the observation period, the closing level of either the S&P 500® Index or the Russell 2000® Index is greater than their respective Upper Barrier Level (125 per cent of the Initial Index Level) or less than their respective Lower Barrier Level (75 per cent of the Initial Index Level)
If a kick-out event occurs, the Contingent Coupon will NOT be payable and a Noteholder will only receive at maturity their original Principal Amount invested.
||30 October 2008
||30 December 2010
||2 years, 2 months
||Fiera Capital Inc
||1.55% paid to Agent, 2% paid to dealers
- Principal protected at maturity
- Eligible for registered accounts
- Market direction neutral
- Potential to receive a Contingent Coupon of 30%
S&P 500® Index or the Russell 2000® Index
Are the Notes right for you?
You may be suited to become a Noteholder if, among other benefits, you:
- Are looking for safety of principal if held to maturity;
- Want the potential to earn a return that may be greater than what is available from a traditional fixed term deposit but with similar risks to your principal investment;
- Want exposure to an investment that is linked to the performance of the Indices;
- Are willing to accept no return on your investment; and
- Believe the closing level of both Indices on each Scheduled Trading Day during the observation period will not fluctuate in excess of their respective Upper Barrier Levels or less than their respective Lower Barrier Levels.
Early trading charges/Secondary market
The Agent intends in normal market conditions, concurrently with HSBC Securities, and subject to certain conditions, to use reasonable efforts to provide daily a secondary market price for the Notes during the Term, in which the maximum bid-offer spread will be one per cent of the Bid Price (excluding commissions) when orders and settlements are made through FundSERV and one per cent of the Principal Amount (excluding commissions) when orders and settlements are not made through FundSERV. Sale of Notes prior to maturity may be subject to an Early Trading Charge as follows:
||Early trading charge
|Issue date to and including 2 March 2009
|3 March 2009 to and including 28 August 2009
|31 August 2009 to and including 1 March 2010
|2 March 2010 to and including the Maturity date
During the term of the Notes, you may inquire as to the net asset value of a Note or the level of the underlying Indices and how they relate to the Contingent Coupon that may be payable under the Notes by contacting HSBC at +1 866 511 4722 or Fiera Capital at
+1 866 323 5598.
Please see the Information Statement for further details or contact your investment adviser.
Investors should carefully review and consider all risks set forth in the Information Statement with their investment adviser, including:
- The volatility or degree to which the level of that each Index changes
- Notes will not constitute insured deposits under Canada Deposit Insurance Corporation Act (Canada)
- Noteholders holding to maturity may not receive the Contingent Coupon
- The return on the Notes is limited to the amount of the Contingent Coupon, if payable
- A kick-out event with respect to either Index could occur on any Scheduled Trading Day during the observation period
- Principal Amount is protected only if Notes are held to maturity
- There is no guaranteed secondary market for the Notes and if such a market develops, there can be no assurance that it will be liquid
- The return on the Notes is not directly linked to the appreciation in the level of the Indices
- The historical or pro forma performance of each Index is not an indication of future performance
- Special circumstances
- Conflicts of interest with the Calculation Agent, HSBC Securities
Right of Cancellation – A subscriber may cancel an order to purchase a Note or cancel the purchase of a Note if the Note has been issued by providing written instructions to the Agent or HSBC directly or through his or her investment adviser any time up to 48 hours after the later of (i) the day on which the agreement to purchase the Note is entered into and (ii) deemed receipt of this Information Statement. Such notice should be directed to: Senior Vice President, HSBC Derivative Products Group, 70 York Street, 8th Floor, Toronto, ON M5J 1S9, Fax +416 868 3088. This rescission right does not extend to Noteholders buying a Note in any secondary market.
Please see the Information Statement for further details. Please do not hesitate to call us at +1 866 511 4722 or Fiera Capital at +1 866 323 5598 or send us an e-mail for more information.
Important: Please read the disclaimer carefully.