Procedures to Purchase New Issued HSBC UK MTN’s with 6% Coupons

New Issued Cash Backed MTNs (Ten Year) from HSBC UK. This is Primary Bank Debt

and the Buyer must move first under Banking Rules and Regulations.

Coupon rate will be 6%, this will be agreed upon in the SPA.
 

Current pricing is 42% to 44% plus 2% for fees or 44% to 46% Inclusive depending

upon the time and the amount of the total contract sale.
 

Buyer to state contract amount with Rolls and extensions

(Minimum Contract Size 5B USD/Euro FACE VALUE).
 

The Buyer must pass initial Bank Compliance before the Owner/Seller arranges issuance
of the newly issued HSBC UK MTNs from their Licensed Allocation.
CIS, Passport and ATV of Account Signatory Party must be submitted first.

The final compliance and Due Diligence are completed by HSBC UK.

 

A current POF is requested to be sent directly to MTN’s Owner/Seller agent only after
the client has passed initial Bank Compliance.
A Bank Confirmation Letter (BCL) from a major acceptable Bank addressed to
the Client/Investor with the Bank’s approved verbiage acknowledging the Funds
are non-criminal origin and have no liens or encumbrances against them.
 

Buyer can purchase the new issued MTN’s with an Independent Credit Line
established against the Buyer’s own Assets.
 

Buyer having passed Bank compliance, will then engage directly with the
Owner/Seller for mutually agreed upon procedures.

 

Owner/Seller will issue a Sales Purchase Agreement (SPA) with all required disclosures
under banking rules and regulations for the Owner/Seller along with the Identifiers
(ISIN’s and Prospectus) for the MTN’s to be issued prior to contract signature by both
parties. Minimum size contract is Five Billion USD/Euro Face Value.
 

Buyer to have an activated Line of Credit or Cash Funds for Contract completion.
Owner/Seller will not bring his Asset forward to have a credit line established for
buyer against it to buy the MTN’s.

 

Owner/Seller will deliver MTNs to the Buyer via Brussels Euroclear DVP or B2B via
SWIFT. (No D2D buy/sell ticket)
 

It is also possible for the Owner/Seller to work with an Internal Bank SWIFT settlement
within HSBC UK.
 

Tranche schedule for delivery and settlement will be determined and agreed upon by
Buyer and Seller in the Sales Purchase Agreement (SPA).