Matured price*: 105.41%
Maturity date: 21 January 2010
The Notes will pay, if held to maturity: i) 100% of the principal amount invested; and ii) a Variable Return that is linked to the positive percentage difference, if any, between the arithmetic average of the Dow Jones Industrial Average® closing levels on 14 preset Observation Dates (18th of October, January, April and July in each year) and the Initial Index Level, subject to a Minimum Variable Return of 7.00% (equivalent to 1.95 % per annum return compounded annually) regardless of the performance of the Index.
||21 July 2006
||21 January 2010
|Selling agent fees:
||3% paid upfront
- Eligible for registered accounts
- Principal protected at maturity
- Variable return based on quarterly averaging
- Minimum variable return of seven per cent of principal amount at maturity
|Dow Jones Industrial Average® Index
Are the Notes right for you?
The Notes may be an appropriate investment for you, if, among other things, you: (1) are looking for safety of principal if held to maturity; (2) want exposure to an investment that is linked to the performance of the Dow Jones Industrial Average® Index and (3) have an investment time horizon of three years or more. 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 advisors to determine the suitability.
Early trading charges/Secondary market
HSBC Securities intends, in normal market conditions, but is under no obligation, to use reasonable efforts to make 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 be subject to an Early Trading Charge as follows:
||2 or greater
Please see the Term sheet for further details or contact your investment advisor.
Noteholders should carefully review and consider all risks set forth in the Term Sheet with their investment advisor, including:
- The volatility or degree to which the level of the Index changes
- Notes will not constitute insured deposits under the Canada Deposit Insurance Corporation Act
- The principal amount and minimum variable return is protected only if Notes are held to maturity
- No guaranteed secondary market
- Price or other movements in the instrument or instruments comprising each Index are unpredictable
- The historical, or pro forma, performance of each Index is not an indication of future performance
- Extraordinary events – HSBC may redeem the Notes prior to maturity upon the occurrence of certain extraordinary events, which include events that could have an impact on HSBC's ability to perform its obligations under the Notes or to hedge its position in respect of its obligation to make payments under the Notes.
- Conflicts of interest with the calculation agent
Amendments to Notes – The global deposit note filed on CDS representing the Notes may from time to time be amended, supplemented or restated by HSBC without the approval of the Noteholders for the following purposes: (i) ensuring or continuing compliance with applicable laws, regulations, rules or requirements of any governmental authority having jurisdiction over HSBC, (ii) changing the dates on which payments are required to be made to conform with customary settlement practices, (iii) making any modification that would not be prejudicial to the interests of Noteholders in the opinion of HSBC, (iv) making changes or corrections which are necessary or desirable for the correction of typographical mistakes or are required for the purpose of curing any ambiguity, defective or inconsistent provisions, omissions or errors.
Please do not hesitate to call us at +1 416 868 3391 or send us an e-mail for more information.
Important: Please read the disclaimer carefully.