HSBC Global Asset Management (Malta) Limited is launching two new five-year Medium Term Notes (MTN), the 100 per cent capital protected HSBC Dow Jones EURO STOXX 50 Accelerator Note 2014 aimed at investors seeking capital protection and growth.

These MTNs are available in two currencies, the USD and EUR and no charges apply if investment is held until maturity. The Notes provide two opportunities: If, at the end of the third year, the underlying index has risen by 12 per cent or more for the USD version or 15 per cent for the EUR version, the Note will mature at that point and pay a gross return of 12 per cent (USD version – equivalent to an annualised gross return of 3.85 per cent) or 15 per cent (EUR version equivalent to an annualised gross return of 4.77 per cent). Otherwise, the Notes run for the full five-year term and will provide a positive participation of 90 per cent of the Index growth, if any, for the USD version of 65 per cent for the EUR version. The MTNs also have the flexibility of early exit as investors can sell their holdings before maturity, (conditions and charges apply).

The Dow Jones EURO STOXX 50 Index® provides a blue-chip representation of super-sector leaders in the euro zone. It covers 50 stocks from 12 eurozone countries: Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

The offer period is between 19 October and 5 December 5 with strike date on 21 December. The offer may close earlier if oversubscribed.

“This Medium Term Note is designed to meet the needs of the local market, hence its short timescale,” said Stephen Pandolfino, Managing Director HSBC Global Asset Management (Malta) Limited. “Also, HSBC’s local and international expertise in foreign investments combined with the bank’s global reputation for financial strength and trustworthiness offers investors the prospect of potential attractive returns in difficult and volatile market conditions while maintaining capital protection.”

Applications can be obtained from any HSBC branch in Malta and Gozo.