HSBC Investable Climate Change Index-Linked Deposit Notes, Series 2

Matured price*: 98.68 %
Maturity date: 1 October 2014

The Notes will pay, if held to maturity: i) 100 per cent of the principal amount invested; and ii) a Variable Return, if any, linked to the change in the value (positive or negative) of the HSBC Investable Climate Change Index. The change in value of the index will be measured from its closing level on 26 March 2008 to the arithmetic average of the closing levels of the index on specified preset quarterly observation dates (26th of May, August, November, and February in each calendar year prior to the maturity date).

Key features

Issue date: 1 April 2008
Maturity date: 1 October 2014
Note term: 6.5 years
CUSIP #: CA40427HNU37
Currency: CAD
Participation: 100%
FundSERV code: HSP 400/401
Selling agent fees: 4% paid upfront


  • Eligible for registered accounts
  • Principal protected at maturity
  • Variable return based on quarterly averaging

Underlying asset(s)

(Index ticker: HSCCII – Bloomberg) Last updated: 1 October 2008

The Index is designed to track and reflect the stock market performance of companies involved in providing solutions to the challenges of global climate change.

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 an index representing companies engaged in climate change-related businesses; (3) want to decrease the effect of both negative and positive changes in the level of the index through the averaging of returns; and (4) you are investing for the longer term.

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, but is under no obligation, to use reasonable efforts to provide a secondary price for the Notes as principal through FundSERV, 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 30 March 2009 4%
1 April 2009 to and including 30 March 2010 3%
1 April 2010 to and including 30 March 2011 2%
1 April 2011 to and including the maturity date 0%

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:

  • The volatility or degree to which the level of each underlying index changes
  • Notes will not constitute insured deposits under Canada Deposit Insurance Corporation Act (Canada)
  • The principal amount is protected only if Notes are held to maturity and there is no assurance the Notes will pay any variable return
  • No guaranteed secondary market
  • Price or other movements in the instruments comprising the indices are unpredictable
  • The historical or pro forma performance of each index is not an indication of future performance
  • Special circumstances – HSBC may redeem the Notes prior to maturity under certain limited circumstances, including a change in the law, regulation, taxation regulations or taxation practice or other circumstances not within the control of the Bank
  • Conflicts of interest with the calculation agent and the index sponsor

Additional information

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 66.66 per cent of the Notes.

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.