HSBC Global Index Selector Deposit Notes, Series 1

Matured price*: 152.69 %
Maturity date: 26 February 2015

The Notes will pay, if held to maturity:

  • 100 per cent of the principal amount invested
  • A Variable Return, if any, linked to the performance of six (6) equity indices within a notional index basket. The Variable Return is derived from the sum of the Locked-In Returns calculated on each annual Observation Date. The Locked-In Return is the highest Index Price Return (which may be positive or negative) selected from the remaining Indices, subject to a maximum of 9 per cent. The Index whose Index Price Return is used for calculation of the Locked-In Return on any Observation Date is then removed from the Index Basket and disregarded for purposes of determining the Locked-In Return on all succeeding Observations Dates

Key features

Issue date: 26 February 2009
Maturity date: 26 February 2015
Observation Dates: On or about February 23 (each year)
Note term: 6 years
CUSIP #: CA40427HQM83
Currency: USD
Fees: 3.25% paid to dealers upfront


  • Principal protected at maturity
  • Eligible for registered accounts
  • Linked to six global indices
  • Annual Locked-In Return capped at 9%

Underlying asset(s)

Index Basket
Index Ticker
Hang Seng China Enterprise Index™ HSCEI
Hang Seng Index® HSI
S&P500®Index SPX
S&PTSX60®Index SPTSX60
S&P BRIC40®Index SBR
DJ Euro Stoxx 50® Index SX5E

Are the Notes right for you?

You may be suited to become a Noteholder if, among other benefits, you: (1) are looking for safety of principal protection if held to maturity; (2) want the potential to earn a return which may be greater than what is available from a traditional fixed term deposit; (3) want exposure to an investment that is linked to the performance of global equities; (4) want to diversify your exposure to more than one equity index; (5) want to decrease the effect of negative changes in the level of an Index; and (6) are investing for the longer term and believe that global equity markets will appreciate.

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 be subject to an Early Trading Charge as follows:

Time period Early trading charge
Issue Date to and including 25 May 2009 3.25%
26 May 2009 to and including 25 August 2009 2.75%
26 August 2009 to and including 25 November 2009 2.25%
26 November 2009 to and including the 25 February 2010 1.75%
26 February 2010 to and including 25 May 2010 1.25%
26 May 2010 to and including 25 August 2010 0.75%
26 August 2010 to and including 25 November 2010 0.25%
26 November 2010 to and including the Maturity Date 0.0%

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 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 adviser.

Risk factors

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

  • Notes will not constitute insured deposits under Canada Deposit Insurance Corporation Act (Canada)
  • The annual Lock-In Return is capped at 9 per cent (maximum Variable Return is 54 per cent)
  • There is no assurance a Noteholder will receive a Variable Return
  • Price or other movements in the instrument or instruments comprising the Indices are unpredictable
  • The Principal Amount is payable only if Notes are held to maturity
  • There is no guaranteed secondary market
  • Decreasing diversification
  • Conflicts of interest with the Calculation Agent
  • Special Circumstances
  • Currency risk

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 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 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.