HSBC Equity-Linked Range Notes, Series 3 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 eight per cent of the principal amount or CAD8.00 per Note, if a 'kick-out event' does not occur during the approximate 10-month observation period. A kick- out event occurs if, on any scheduled trading day during the observation period, the market price of the shares of the iShares MSCI EAFE Index Fund at any time is greater than the upper barrier level (109.70 per cent of the initial price) or less than the lower barrier level (90.30 per cent of the initial price)
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.
||27 May 2008
||27 March 2009
|Selling agent fees:
- Eligible for registered accounts
- Principal protected at maturity
- Linked to the iShares MSCI EAFE Index Fund
- Potential to receive a contingent coupon of eight per cent
Shares of the iShares MSCI EAFE Index Fund (Ticker: EFA), an exchange traded fund listed on NYSE ARCA ('Reference Security')
Are the Notes right for you?
You may be suited to become a Noteholder if, among other benefits, you:
- 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.
- 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 a short-term investment that is linked to the performance of the reference security; and
- You believe the volatility in the market price of the reference security will be sufficiently low throughout the observation period where the market price will not fluctuate in excess of the upper barrier level or less than the lower barrier level.
Early trading charges/Secondary market
HSBC Securities (Canada) Inc intends, in normal market conditions, but is under no obligation, 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 is not subject to an early trading charge. Please see the information Statement for further details or contact your investment adviser.
Noteholders 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 market price of the reference security 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 could occur at any time during 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 appreciation in the reference security
- The historical or pro forma performance of the reference security is not an indication of future performance
- Delisting or suspension of trading in the shares of the reference security
- Conflicts of interest with the calculation agent
Right of rescission - A subscriber may only rescind any order to buy a Note (or its purchase if issued) by notice in writing to HSBC within 48 hours of the earlier of actual receipt and deemed receipt of the information Statement. Such notice should be directed to: Senior Vice President, HSBC Derivative Products Group, 70 York Street, 8th Floor, Toronto, ON M5J 1S9. This rescission right does not extend to Noteholders buying a Note in any secondary market.
Amendments to Notes - The global deposit note filed on CDS representing the Notes may be amended without the consent of the holders by the Bank if, in the reasonable opinion of the Bank, the amendment would not materially and adversely affect the interests of the holders. In other cases, the global deposit note may be amended if the amendment is approved by a resolution passed by the favourable votes of the holders of not less than 662/3 per cent of the Notes.
Please do not hesitate to call us at +1 866 511 4722 or send us an e-mail for more information.
Important: Please read the disclaimer carefully.