Candour Deferred Purchase Agreement - IncomeBoost Series
HSBC Subordinated Notes with IncomeBoost
Initial Offer Closing Date
17/04/2025
HSBC Subordinated Notes with IncomeBoost is a structured investment issued under a Deferred Purchase Agreement (DPA), offering leveraged exposure to investment-grade bank capital. Investors contribute $10,000 equity per unit, gaining $50,000 exposure to HSBC's 10NC5 Tier 2 subordinated note issued in March 2025. The remaining $40,000 per unit is funded via an 80% Limited Recourse Investment Loan at a fixed interest rate of 5.1525% p.a. The product pays a net return on equity of 8.00% p.a., distributed semi-annually in arrears.
Completed Application Forms must be received by this time. Cleared funds must be available from the date the Application Form is lodged.
*Available to Wholesale Investors only.
Currency Exposure
AUD
Investment Term
~ 4 years, 10 months
Reference Asset / Index
HSBC 10NC5 Tier 2 Subordinated Notes
Issue Price
$50,000 per Unit
Minimum Investment Amount
AUD $500,000
Redemption Price at Maturity
$50,000 per Unit
Reference Asset Coupon Rate
5.722% p.a. (semi-annually in arrears)
Investment Loan Interest Rate
5.1525% p.a. (Limited Recourse Loan)
Net Return on Equity
8.00% p.a. (semi-annual distribution)