HSBC Bank Bermuda Limited Fixed to Floating Certificates of Deposit

Transcription

1 HSBC Bank Bermuda Limited Fixed to Floating Certificates of Deposit General Terms and Conditions Deposit Highlights December 21, 2016 Certificates of deposit (the CDs ) issued by HSBC Bank Bermuda Limited (the Issuer ) Full principal protection payable by the Issuer if the CDs are held to maturity CDs are obligations of the Issuer and not its affiliates or agents, and amounts due under the CDs are subject to the Issuer s creditworthiness As described more fully herein, early withdrawals are permitted at par in the event of death of the beneficial owner of the CDs HSBC Bank Bermuda Limited is licensed to conduct investment business by the Bermuda Monetary Authority Key Terms 5 year 100% principal protected Fixed to Floating Certificates of Deposit Currency of denomination: $ refers to United States Dollars Principal Amount: $5,000 for each CD. Minimum deposit amount of $5,000 per depositor and then in additional increments of $1,000. Offer Period: November 28 to December 14, 2011 Trade Date: December 14, 2011 Settlement Date: December 21, 2011 Maturity Date: December 21, 2016 Interest: The Interest is paid semi-annually and will accrue at the applicable Interest Rate set forth below. The Interest payable will be computed on the basis of a 360-day year consisting of twelve 30-day months. Interest Rate: For each Interest Payment Period between the Original Issue Date and the second anniversary of the Original Issue Date (the Fixed Rate Payment Period ): the rate is 2.00%. For each Interest Payment Period following the Fixed Rate Payment Period (the "Floating Rate Payment Period"): a rate per annum equal to the lesser of (a) the 3-Month LIBOR on the applicable Interest Determination Date (as defined below) plus 0.95% per annum, and (b) the Cap, subject to the minimum Interest Rate of 0.00% per annum (see page 9 for details). The Interest Rate with respect to each Floating Rate Payment Period will be reset semi-annually on the applicable Interest Determination Date. Cap: 5.00% Interest payment periods: The period beginning on and including the Original Issue Date and ending on but excluding the first Interest Payment Date, and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next succeeding interest payment date. Interest Payment Dates: The 21 st calendar day of each June and December, commencing on June 21, 2012, up to and including the Maturity Date, provided that if any such day is not a Business Day, the relevant Interest Payment Date shall be the next succeeding Business Day and interest will continue to accrue, except that if such Business Day is in the next succeeding calendar month, the Interest Payment Date will be the immediately preceding Business Day. If the Maturity Date falls on a date that is not a Business Day, payment of the Interest and principal will be made on the next succeeding Business Day, and no interest will accrue for the period from and after the originally scheduled Maturity Date. Maturity Redemption Amount: 100% of the Principal Amount plus any accrued and unpaid Interest. Business Day: A day other than a Saturday or Sunday that banks are open for business in Bermuda provided that, with respect to any Interest Payment Date during the Floating Rate Payment Period, the day is also a London Banking Day. London Banking Day: A day on which commercial banks are open for business, including dealings in U.S. Dollars, in the city of London, England. Listing: The CDs will not be listed on any securities exchange or quotation system. Early Redemption: Depositors may sell a CD back to the Issuer, but there is no guarantee that 100% of the principal will be returned to the depositor where the CD is redeemed prior to maturity at the option of the depositor. 3-month LIBOR: The London Interbank Offered Rate (British Banker s Association) for deposits in U.S. dollars for a period of three months that banks charge each other for loans.

2 Purchasing the CDs involves a number of risks. See Risk Factors beginning on page 8. This document is issued by HSBC Bank Bermuda Limited which is licensed to conduct banking and investment business by the Bermuda Monetary Authority. The circulation and distribution of this document in certain countries may be restricted by law. Persons into whose possession this document may come are required to inform themselves of and to observe any such restrictions. This document does not constitute an offer or solicitation at any time to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. The material contained in this document is for information only and does not constitute investment, legal, tax or other advice, or a recommendation to any reader of this material to buy or sell investments. Each prospective investor must rely upon his or her own representatives, including his or her own legal counsel and accountants, as to legal, economic, tax and related aspects of the investment described herein and as to its suitability for such investor. Consequently, neither HSBC Bank Bermuda Limited nor its affiliates can be held responsible for any investment decisions taken on the basis of the commentary and/or analysis in this document. The contents of this document are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. All non-authorised reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. The material contained in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. Consequently, neither HSBC Bank Bermuda Limited nor its affiliates can be held responsible for any investment decisions taken on the basis of the commentary and/or analysis in this document. HSBC Bank Bermuda Limited has based this document on information obtained from sources it believes to be reliable but which it has not independently verified. Care has been taken to ensure the accuracy and completeness of this document but HSBC Bank Bermuda Limited and HSBC Group accepts no responsibility for any errors or omissions contained therein. The information contained in this document is subject to change without notice. It is intended for discussion only and shall not be capable of creating any contractual or other legal obligations on the part of HSBC Bank Bermuda Limited or any other HSBC Group company. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Bank Bermuda Limited accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up. Where overseas investments are held the rate of exchange may cause the value of such investments to go down as well as up. Any performance information shown refers to the past should not be seen as an indication of future returns. Investors should consider their investment objectives, whether they can assume these risk and should obtain their own professional advice. It is important to note that where charges are taken from capital, it could result in an erosion of the value of your investment. Please refer to the product literature for full information. HSBC Bank Bermuda Limited 6 Front Street Hamilton HM11, Bermuda ii

3 TABLE OF CONTENTS SUMMARY OF TERMS 4 HSBC Bank USA, National Association Trading & Sales Desk: (212) QUESTIONS AND ANSWERS Fifth Ave., New York, NY INVESTOR SUITBAILITY 7 RISK FACTORS 8 ILLUSTRATIVE EXAMPLES 10 3

4 SUMMARY OF TERMS Set forth in these Terms and Conditions is a summary of certain of the terms and conditions of the Fixed to Floating Certificates of Deposit maturing December 21, The following summary of certain terms of the CDs is subject to the more detailed terms of the CDs included elsewhere in these Terms and Conditions. Issuer: Issuer Rating: CDs: Minimum Deposit Amount: Currency of denomination: Principal Amount: HSBC Bank Bermuda Limited The issuer is currently rated AA from Standard and Poor s. The credit ratings pertain only to the creditworthiness of the Issuer and are not indicative of the market risk associated with the CDs. Fixed to Floating Rate Certificates of Deposit. $5,000 Principal Amount and multiples of $1,000 Principal Amount thereafter. $ refers to United States Dollars. $5,000 for each CD. Offer Period: November 28 to December 14, 2011 Issue Date: December 21, Maturity Date: December 21, Interest: Interest Rate: The Interest is paid semi-annually and will accrue at the applicable Interest Rate set forth below. The Interest payable will be computed on the basis of a 360-day year consisting of twelve 30-day months. For each Interest Payment Period between the Original Issue Date and the second anniversary of the Original Issue Date (the "Fixed Rate Payment Period"): the rate is 2.00% per annum. For each Interest Payment Period following the Fixed Rate Payment Period (the "Floating Rate Payment Period"): a rate per annum equal to the lesser of (a) the 3-Month LIBOR on the applicable Interest Determination Date (as defined below) plus 0.95% per annum, and (b) the Cap, subject to the minimum Interest Rate of 0.00% per annum. The Interest Rate with respect to each Floating Rate Payment Period will be reset semi-annually on the applicable Interest Determination Date. Interest Payment Periods: Interest Payment Dates: The period beginning on and including the Original Issue Date and ending on but excluding the first Interest Payment Date, and each successive period beginning on and including an Interest Payment Date and ending on but excluding the next succeeding interest payment date. Interest Payment Dates: The 21st calendar day of each June and December, commencing on June 21, 2012, up to and including the Maturity Date, provided that if any such day is not a Business Day, the relevant Interest Payment Date shall be the next succeeding Business Day and interest will continue to accrue, except that if such Business Day is in the next succeeding calendar month, the Interest Payment Date will be the immediately preceding Business Day. If the Maturity Date falls on a date that is not a Business Day, payment of the Interest and principal will be made on the next succeeding Business Day, and no interest will accrue for the period from and after the originally scheduled Maturity Date. Cap: 5.00% 4

5 3-Month LIBOR: Maturity Redemption Amount: The London Interbank Offered Rate (British Banker s Association) for deposits in U.S. dollars for a period of three months that appears on Reuters page LIBOR01, as of 11:00 a.m., London time, on the Interest Determination Date, which is, with respect to any Floating Rate Payment Period, the date which is two London Banking Days immediately preceding such Floating Rate Payment Period. For example, we expect that June 19, 2014 (which is two London Banking Days prior to the scheduled June 23, 2014 Interest Payment Date during the Floating Rate Payment Period) will be the Interest Determination Date with respect to the Floating Rate Payment Period commencing on, and including, June 23, 2014 to, and excluding December 22, The Maturity Redemption Amount is the total amount due and payable on each CD on the Maturity Date. On the Maturity Date, the depositor of each CD will receive an amount equal to the Principal Amount, plus any accrued and unpaid Interest. Early Redemption: Depositors may sell a CD back to the Issuer, but there is no guarantee that 100% of the principal will be returned to the depositor where the CD is redeemed prior to maturity at the option of the depositor. Early Redemption upon the Death of a Depositor: In the event of the death of any depositor of CDs, the full withdrawal of the Principal Amount of the CDs of that depositor will be permitted. In that event, the successor of that depositor shall give prior written notice of the proposed withdrawal to the Issuer, together with appropriate documentation to support the request, within 180 days of the death of such depositor. In that event, only a full withdrawal of the Principal Amount of the CDs will be permitted. CDs so redeemed will not be entitled to any interest on the Principal Amount. Business Day: Any day, other than a Saturday or Sunday, that is a day on which banks are open for business in Bermuda provided that, with respect to any Interest Payment Date during the Floating Rate Payment Period, the day is also a London Banking Day. London Banking Day: Calculation Agent: Any day, other than a Saturday or Sunday, that is a day on which commercial banks are open for business, including dealings in U.S. Dollars, in the city of London, England. HSBC Bank Bermuda Limited All determinations and calculations made by the Calculation Agent will be at the sole discretion of the Calculation Agent and will, in the absence of manifest error, be conclusive for all purposes and binding on the depositors of the CDs. Listing: Risk Factors: None. See Risk Factors herein. The purchase of the CDs involves certain risks. See Risk Factors herein for a discussion of some of the factors which should be considered by prospective purchasers of the CDs. 5

6 QUESTIONS AND ANSWERS What Are the CDs? The CDs are certificates of deposit issued by the Issuer. The CDs mature on the Maturity Date. Depositors of the CDs also have the right to cause the Issuer to redeem their CDs in whole, but not in part, as described below. Redemptions may occur optionally upon the death of a depositor. Each CD represents an initial deposit by a depositor to the Issuer of $5,000 Principal Amount and the CDs will be issued in multiples of $1,000 in excess thereof. Depositors will not have the right to receive physical certificates evidencing their ownership of the CDs; instead the Issuer will issue the CDs in book-entry form. What Interest will be paid on the CDs? For each Interest Payment Period between the Original Issue Date and the second anniversary of the Original Issue Date (the "Fixed Rate Payment Period"): 2.00% per annum. For each Interest Payment Period following the Fixed Rate Payment Period (the "Floating Rate Payment Period"): a rate per annum equal to the lesser of (a) the 3-Month LIBOR on the applicable Interest Determination Date (as defined below) plus 0.95% per annum, and (b) the Cap, subject to the minimum Interest Rate of 0.00% per annum. The Interest Rate with respect to each Floating Rate Payment Period will be reset semi-annually on the applicable Interest Determination Date. What Amount Will Depositors Receive at Maturity in Respect of the CDs? At the scheduled maturity, the amount depositors will receive for each CD will be equal to the Maturity Redemption Amount, which will equal the Principal Amount of the CD plus any accrued and unpaid Interest, as described in the Summary of Terms above. For more information, see Summary of Terms above. What about Liquidity? While there is no restriction on a depositor s ability to sell the CD back to the Issuer, there is currently no established secondary trading market for the CDs. There is no assurance that a secondary market for the CDs will develop, or if it develops, that it will continue. In the event that a depositor could find a buyer of his or her CD, it is likely that the price a buyer would be willing to pay would be net of the commissions paid or discount allowed to the Agents on the initial placement of the CDs. Prospective depositors should carefully consider all of the information set forth in these Terms and Conditions. What about Fees? Agents may receive a commission or be allowed a discount as compensation for their services. The actual compensation may vary depending upon various factors including market conditions and the duration of the CD. 6

7 INVESTOR SUITABILITY The CDs may be suitable for you if: You are willing to make an investment based on a fixed rate during the Fixed Rate Payment Period and dependant thereafter on the 3-Month LIBOR plus a spread of 0.95%, subject to the Cap. You believe the 3-Month LIBOR will generally be positive on Interest Determination Dates by an amount sufficient to provide you with a satisfactory return on your investment. You are willing to invest in the CDs based on the fixed rate of 2.00% per annum during the Fixed Rate Payment Period and a capped return of 5.00% per annum during the Floating Rate Payment Period, which may limit your Interest for each Floating Rate Payment Period. You do not seek an investment for which there is an active secondary market. You are willing to hold the CDs to maturity. You are comfortable with the creditworthiness of HSBC Bank Bermuda Limited, as Issuer of the CDs. The CDs may not be suitable for you if: You are unwilling to invest in the CDs based on the spread of 0.95% added to the 3-Month LIBOR applicable to the corresponding Interest Payment Dates during the Floating Rate Payment Period. You are unwilling to invest in the CDs based on the Cap, which may limit the Interests for each Floating Rate Payment Period. You are unwilling to invest in the CDs based on the Interest Rate during the Fixed Rate Payment Period equal to the fixed rate of 2.00% per annum. You prefer the lower risk, and therefore accept the potentially lower returns, of conventional debt securities with comparable maturities issued by HSBC or another issuer with a similar credit rating. You seek an investment for which there will be an active secondary market. You are unable or unwilling to hold the CDs to maturity. You are not willing or are unable to assume the credit risk associated with HSBC Bank Bermuda Limited, as Issuer of the CDs. You seek higher returns than those potentially offered with this product You seek greater liquidity and/or shorter term investments 7

8 RISK FACTORS It is suggested that prospective depositors considering purchasing CDs reach a decision to purchase only after carefully considering, with their financial, legal, tax, accounting and other advisors, the suitability of the CDs in light of their particular circumstances and the risk factors set forth below and other information set forth in these Terms and Conditions. You will be subject to certain risks not associated with conventional fixed-rate or floating-rate CDs or debt securities. Depositors Are Not Guaranteed the Receipt of the Principal Amount of their CDs if they Redeem the CDs Early. The CDs are designed so that if, and only if, they are held to maturity, the depositor will receive no less than the Principal Amount of his or her CDs. If a depositor redeems the CDs early at his or her option, the depositor will not be entitled to, and may not receive, any return on his or her CD. As a result, the proceeds payable upon an Early Redemption may be less (and may be substantially less) than the Principal Amount of the CDs. No Secondary Market for the CDs Exists. Sales in the secondary market and/or live unwind prices quoted for the CDs by the Issuer prior to maturity may result in losses. Depositors may sell the CD back to the issuer prior to maturity, however, there is no guarantee the depositor will receive 100% of their principal. It is currently the practice of the Issuer to quote on request a live price (determined by the Issuer in its sole discretion) which it would pay/charge for early termination of any CD of this type that it issues. The Issuer may under certain conditions such as a market disruption event affecting the markets generally or the Issuer specifically, cease to provide live unwind prices. A live unwind price for a CD of this type on any day of its terms may be affected by then-current market conditions including liquidity. A live unwind price for a CD of this type can change significantly from day to day over the life of the CD. The Issuer is under no obligation to hold a price quoted for any length of time unless this is agreed at the time of giving the quote. Adverse Economic Interests to Depositors. HSBC Bank Bermuda Limited is the Calculation Agent and will be solely responsible for the determination and calculation of the CD s Interest, Maturity Redemption Amount and any other determinations and calculations in connection with the CDs. Because the Issuer is the Calculation Agent, it may have economic interests adverse to those of the depositors, including with respect to certain determinations and judgments that the Calculation Agent must make in determining, for example, the Maturity Redemption Amount, if any. However, the Calculation Agent is obligated to carry out its duties and functions as calculation agent in good faith and using its reasonable judgment. The CDs are Not Ordinary Debt Securities and the Interest Rate is Not Fixed for any Floating Rate Payment Period and is Variable. The Interest Rate is not fixed for any Floating Rate Payment Period, but will vary depending on the 3-Month LIBOR plus 0.95%, subject to the Cap, which may be less than returns otherwise payable on debt securities issued by us with similar maturities. The variable interest rate on the CDs, while determined, in part, by reference to the 3-Month LIBOR, does not actually pay at such rate. We have no control over any fluctuations in the 3-Month LIBOR. Your Interest Rate for Each Interest Payment Date during the Floating Rate Payment Period is Limited By the Cap. During the Floating Rate Payment Period, the Interest Rate will be capped at the Cap of 5.00% per annum. As a result, you will not participate in any 3-Month LIBOR in excess of 4.05%. YOUR INTEREST RATE WILL NOT BE GREATER THAN THE CAP. The 3-Month LIBOR, and Therefore the Value of the CDs, May be Volatile and Will Be Affected By a Number of Factors. The 3-Month LIBOR, and therefore the value of the CDs is subject to volatility due to a variety of factors, including but not limited to: interest and yield rates in the market, changes in, or perceptions, about the future 3-Month LIBOR, general economic conditions, policies of the Federal Reserve Board regarding interest rates, supply and demand among banks in London for U.S. dollar-denominated deposits with approximately a three-month term, sentiment regarding underlying strength in the U.S. and global economies, 8

9 expectations regarding the level of price inflation, sentiment regarding credit quality in the U.S. and global credit markets, central bank policy regarding interest rates, inflation and expectations concerning inflation, performance of capital markets, geopolitical conditions and economic, financial, political, regulatory or judicial events that affect markets generally and that may affect the 3-Month LIBOR, the time remaining to the maturity of the CDs, and the creditworthiness of the Issuer. The impact of any of the factors set forth above may enhance or offset some or any of the changes resulting from another factor or factors. Increases or decreases in the 3-Month LIBOR could result in the corresponding Interest Rate decreasing or an Interest Rate of zero and thus in the reduction of the Interest payable on the CDs. The Amount of Each Semi-Annual Interest Payable During the Floating Rate Payment Period is Uncertain and Could be Equal to Zero You will receive a semi-annual Interest on the applicable Interest Payment Date during the Floating Rate Payment Period that accrues at a rate per annum equal to the 3-Month LIBOR plus 0.95%, subject to the Cap of 5.00% per annum. The 3-Month LIBOR may be influenced by a number of factors, including (but not limited to) monetary policies, fiscal policies, inflation, general economic conditions and public expectations with respect to such factors. The effect that any single factor may have on the 3-Month LIBOR may be partially offset by other factors. We cannot predict the factors that may cause the 3-Month LIBOR to increase or decrease. A decrease in 3- Month LIBOR below 4.05% applicable to an Interest Payment Date during the Floating Rate Payment Period will result in a reduction of the applicable Interest. A 3-Month LIBOR that is -0.95% or less will cause the Interest Rate for the applicable Interest Payment Date during the Floating Rate Payment Period to be equal to zero. Each semi-annual Interest after December 23, 2013 may be equal to zero, and you will not be compensated for any loss in value due to inflation and other factors relating to the value of money over time. You should consider, among other things, the overall potential annual Interest Rate to maturity of the CDs as compared to other investment alternatives. 9

10 ILLUSTRATIVE EXAMPLES The following table indicates the Interest payable on the Interest Payment Dates during the Fixed Rate Payment Period. Payments are based on $1,000 investment and paid semi-annual. The dates in the table below refer to originally scheduled Interest Payment Dates during the Fixed Rate Payment Period and may be postponed as described herein. Interest Payment Date (expected) Interest Rate Per Annum Interest (semi-annual) June 21, % $10.00 December 21, % $10.00 June 21, % $10.00 December 23, % $10.00 The following scenario analysis and examples are provided for illustrative purposes only and are purely hypothetical. They do not purport to be representative of every possible scenario concerning increases or decreases in the 3-Month LIBOR and we cannot predict the 3- Month LIBOR on any Interest Determination Date. You should not take the scenario analysis and these examples as an indication or assurance of the expected performance of the 3-Month LIBOR. The numbers set forth in the examples below have been rounded for ease of analysis. The following scenario analysis and examples illustrate the Interest determination for a $1, Principal Amount of CDs, assume that there are 180 days in each semi-annual period and reflect the Interest Cap of 5.00% and the spread of 0.95%. Hypothetical 3- Hypothetical Interest Hypothetical Spread Cap Month LIBOR Rate Per Annum Interest 6.00% % 5.00% 5.00% $ % % 5.00% 5.00% $ % % 5.00% 4.95% $ % % 5.00% 4.75% $ % % 5.00% 4.55% $ % % 5.00% 4.35% $ % % 5.00% 4.15% $ % % 5.00% 3.95% $ % % 5.00% 3.75% $ % % 5.00% 3.55% $ % % 5.00% 3.35% $ % % 5.00% 3.15% $ % % 5.00% 2.95% $ % % 5.00% 1.95% $ % % 5.00% 0.95% $4.75 Example 1: On an Interest Determination Date, the 3-Month LIBOR is equal to 2.00%. Because the 3-Month LIBOR plus 0.95% is 2.95%, which is less than the Cap, the Interest Rate for such Interest Payment Date during the Floating Rate Payment Period is 2.95% per annum and the Interest payment on the relevant Interest Payment Date during the Floating Rate Payment Period would be $14.75 per $1,000 Principal Amount of CDs calculated as follows: 1,000 Interest Rate 180/360 = $1, % 180/360 = $14.75 Example 2: On an Interest Determination Date, the 3-Month LIBOR is equal to 6.00%. Because the 3-Month LIBOR plus 0.95% is 6.95%, which is greater than the Cap, the Interest Rate for such Interest Payment Date during the Floating Rate Payment Period is equal to the Cap of 5.00% per annum and the Interest payment on the relevant Interest Payment Date during the Floating Rate Payment Period would be $25.00 per $1,000 Principal Amount of CDs, the maximum payment on the CDs, calculated as follows: 1,000 Interest Rate 180/360 = $1, % 180/360 = $

11 HISTORICAL PERFORMANCE OF THE 3-MONTH LIBOR The following graph sets forth the historical performance of the 3-Month LIBOR based on the daily historical closing levels from October 14, 2006 through October 14, We obtained the closing rates below from Bloomberg Professional Service. We make no representation or warranty as to the accuracy or completeness of the information obtained from Bloomberg Professional Service. The closing rates displayed in the graph below are for illustrative purposes only and do not form part of the calculation of the Interest Rate on the CDs. The 3-Month LIBOR, as appeared on Bloomberg Professional Service on October 14, 2011 was %. The closing rate reported by Bloomberg Professional Service may not be indicative of the 3-Month LIBOR that will be derived from the applicable Reuters page. Historical Performance of the 3-Month LIBOR 6% 5% 4% 3% 2% 1% 0% Oct-06 Oct-07 Oct-08 Oct-09 Oct-10 Oct-11 Source: Bloomberg Professional Service The historical 3-Month LIBOR should not be taken as an indication of future performance, and no assurance can be given as to the 3- Month LIBOR relevant to any Interest Payment Date during the Floating Rate Payment Period. We cannot give you assurance that the performance of the 3-Month LIBOR will result in an Interest Rate, other than with respect to Interest Payments Dates originally scheduled to occur on or before December 7, 2013, that will provide a satisfactory return on your investment. 11

12 This presentation is issued by HSBC Bank Bermuda Limited which is licensed to conduct banking and investment business by the Bermuda Monetary Authority. The circulation and distribution of this document in certain countries may be restricted by law. Persons into whose possession this document may come are required to inform themselves of and to observe any such restrictions. This document does not constitute an offer or solicitation at any time to any person in any jurisdiction in which such offer or solicitation is not authorised or to any person to whom it is unlawful to make such offer or solicitation. The material contained in this document is for information only and does not constitute investment, legal, tax or other advice, or a recommendation to any reader of this material to buy or sell investments. Each prospective investor must rely upon his or her own representatives, including his or her own legal counsel and accountants, as to legal, economic, tax and related aspects of the investment described herein and as to its suitability for such investor. Consequently, neither HSBC Bank Bermuda Limited nor its affiliates can be held responsible for any investment decisions taken on the basis of the commentary and/or analysis in this document. The contents of this document are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. All non-authorized reproduction or use of this document will be the responsibility of the user and may lead to legal proceedings. The material contained in this document is for information only and does not constitute investment advice or a recommendation to any reader of this material to buy or sell investments. Consequently, neither HSBC Bank Bermuda Limited nor its affiliates can be held responsible for any investment decisions taken on the basis of the commentary and/or analysis in this document. HSBC Bank Bermuda Limited has based this document on information obtained from sources it believes to be reliable but which it has not independently verified. Care has been taken to ensure the accuracy and completeness of this document but HSBC Bank Bermuda Limited and HSBC Group accepts no responsibility for any errors or omissions contained therein. The information contained in this document is subject to change without notice. It is intended for discussion only and shall not be capable of creating any contractual or other legal obligations on the part of HSBC Bank Bermuda Limited or any other HSBC Group company. Any forecast, projection or target where provided is indicative only and is not guaranteed in any way. HSBC Bank Bermuda Limited accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up. Where overseas investments are held the rate of exchange may cause the value of such investments to go down as well as up. Any performance information shown refers to the past should not be seen as an indication of future returns. Investors should consider their investment objectives, whether they can assume these risk and should obtain their own professional advice. It is important to note that where charges are taken from capital, it could result in an erosion of the value of your investment. Please refer to the product literature for full information. HSBC Bank Bermuda Limited 6 Front Street Hamilton HM, Bermuda 12