HSBC BRIC Currency-Linked Deposit Notes, Series 4

Matured price: 98.83 %
Maturity date: 29 April 2013

The Notes will pay, if held to maturity:

  • 100 per cent of the principal amount invested and a Variable Return, if any, linked to the increase, if any, in the value of a notional currency basket ('Currency Basket') comprised the following four (4) equally weighted currencies representing the group of countries often referred to under the acronym 'BRIC': the Brazilian real, the Russian ruble, the Indian rupee and the Chinese yuan (each a 'Currency' and collectively, the 'Currencies').The change in value of each Currency will be measured from its respective Exchange Rate relative to the U.S. Dollar on the Issue Date to its Exchange Rate relative to the U.S. Dollar on the Valuation Date
  • If the Variable Return is zero or less than zero, then the Notes will not pay a Variable Return

Key features

Issue date: 29 October 2009
Maturity date: 29 April 2013
Note term: 3.5 year
CUSIP #: CA40427HRK19
Currency: USD
Participation: 115%
Selling Agent fees: USD3.00 per Note (3.00% of the Principal Amount)


  • Principal protected at maturity
  • Eligible for registered accounts

Underlying asset(s)

Currency Exchange rate Component weight
Brazilian real USD/BRL 25%
Russian ruble USD/RUB 25%
Indian rupee USD/INR 25%
Chinese yuan USD/CNY 25%

Are the Notes right for you?

You may be suited to become a Noteholder if, among other benefits, you: (a) are looking for safety of principal if held to maturity; (b) want exposure to an investment that is linked to the performance of BRIC currencies; and (c) you are prepared to hold the Notes until maturity.

The Notes do not provide investors with a return or income stream prior to maturity. The effective yield to maturity of the Notes may be less than that which would be payable on a conventional fixed-rate or floating-rate debt instrument. The Notes are generally more suitable for purchasing and holding up to maturity. Potential investors should consult with their own investment, legal and tax advisers to determine the suitability.

Early trading charges/Secondary market

HSBC Securities (Canada) Inc intends, in normal market conditions, to use reasonable efforts to provide a secondary price for the Notes as principal, but reserves the right not to do so in the future in its sole discretion, without providing prior notice to the Noteholders. Sale of Notes prior to maturity may subject to an Early Trading Charge as follows:

Time period Early trading charge
Issue date to and including 31 January 2009 3.00%
1 February 2010 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 Currencies and how they relate 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.

Risk factors

Noteholders should carefully review and consider all risks set forth in the information statement with their investment adviser, including:

  • The Notes will not constitute insured deposits
  • The Principal Amount is payable only if Notes are held to maturity
  • Noteholders may not receive a Variable Return
  • 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
  • Price or other movements in the Exchange Rates of the Currencies relative to the U.S. Dollar are unpredictable
  • Noteholders have no ownership interest in the Currencies
  • Currencies are volatile and the Exchange Rates are affected by multiple factors specific to each foreign country, including the risk of government intervention
  • Notes could be redeemed prior to maturity as a result of Special Circumstances
  • Conflicts of interest

Additional information

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 HSBC directly or through his or her investment adviser any time up to two days 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 +1 416 868 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 send us an
e-mail for more information.

*The price is before the application of an early trade charge that may apply. The secondary market price for a Note, if available, represents the bid price of such Note as a percentage (%) of the original principal amount invested. The bid price stated is only as of the date indicated.

Important: Please read the disclaimer carefully.