May 16, 2016 - HSBC USA Inc. is announcing the redemption of $1.265 billion of preferred securities. This redemption will affect all of the preferred securities of the following series: 20,700,000 shares of Floating Rate Non-Cumulative Preferred Stock, Series F (ticker symbol: HUSI-PR F); 373,750 shares of Floating Rate Non-Cumulative Preferred Stock, Series G and 14,950,000 Depositary Shares, each representing one-fortieth of a share of Floating Rate Non-Cumulative Preferred Stock, Series G (ticker symbol: HUSI-PR G); and 373,750 shares of 6.50% Non-Cumulative Preferred Stock, Series H and 14,950,000 Depositary Shares, each representing one-fortieth of a share of 6.50% Non-Cumulative Preferred Stock, Series H (ticker symbol: HUSI-PR H). The Floating Rate Non-Cumulative Preferred Stock, Series F and the Series G and H depositary shares are listed on the New York Stock Exchange under the above ticker symbols. The redemption date for each series of securities is June 30, 2016. The cash redemption price payable for each series of securities on the redemption date will equal: For the 20,700,000 shares of Floating Rate Non-Cumulative Preferred Stock, Series F, $25 liquidation preference per share of Floating Rate Non-Cumulative Preferred Stock, Series F, plus an amount equal to the accrued but unpaid dividends thereon for the then-current dividend period to but excluding the redemption date; For the 14,950,000 depositary shares of Floating Rate Non-Cumulative Preferred Stock, Series G, $25 liquidation preference per share (which is equivalent to $1,000 liquidation preference per share of Floating Rate Non-Cumulative Preferred Stock, Series G), plus an amount equal to the accrued but unpaid dividends thereon for the then-current dividend period to but excluding the redemption date; and For the 14,950,000 depositary shares of 6.50% Non-Cumulative Preferred Stock, Series H, $25 liquidation preference per share (which is equivalent to $1,000 liquidation preference per share of 6.50% Non-Cumulative Preferred Stock, Series H), plus an amount equal to the accrued but unpaid dividends thereon for the then-current dividend period to but excluding the redemption date. The redemptions announced today were approved by the Federal Reserve Board as part of HSBC North America’s planned capital actions pursuant to the 2015 Comprehensive Capital Analysis and Review (CCAR), and reflect the strategy of HSBC North America Holding Inc. and HSBC USA of continuing to optimize their capital structures according to U.S. Basel III. In light of the redemption of the Series F shares and of the Series G and H depositary shares on June 30, 2016, including payment of accrued and unpaid dividends, the dividend payments scheduled for July 1, 2016, will not be made. Beginning on the redemption date, the redeemed securities will no longer be considered outstanding and dividends will no longer accrue on such securities. HSBC Bank USA, N.A. is the registrar and transfer agent for each series of preferred securities and is the depositary for the Series G and H depositary shares. HSBC Bank USA, N.A.’s address is as follows: HSBC Bank USA, NA Corporate Trust and Loan Agency 452 Fifth Ave. 8E6, NY, NY 10018 Attn: Account Bank

QUANTUMONLINE.COM SECURITY DESCRIPTION:  HSBC USA, Inc., Floating Rate Non-Cumulative Preferred Stock, Series F, liquidation preference $25 per share, redeemable at the issuer's option on or after 4/07/2010 at $25 per share plus declared and unpaid dividends, with no stated maturity, and with noncumulative floating rate distributions paid quarterly, if declared by the board of directors, on 1/1, 4/1, 7/1 & 10/1 to holders of record on the date fixed by the board, not more than 60 days or less than 10 days prior to the payment date (NOTE: the ex-dividend date is at least 2 business days prior to the record date). The floating rate will be equal to the three-month LIBOR plus 0.75% of the stated value of $25 per share, but will not be less than 3.50% per annum. Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders. In regards to payment of dividends and upon liquidation, the preferred shares rank equally with other preferreds and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below. USBC USA (formerly Republic New York Corp.) is a subsidiary of HSBC North America Inc. which in turn is an indirect subsidiary of HSBC Holdings plc (NYSE: HSBC).

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Distribution Dates	15% Tax Rate
NYSE Chart	FixFloat n.a.	$25.00 $25.00	Called for 6/30/2016 None	Baa2 BBB- 2/18/2016	1/1, 4/1, 7/1 & 10/1 Click for MW ExDiv Date Click for Yahoo ExDiv Date	YES

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HOME PAGE:     http://www.hsbc.com/
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Inv Rel Email Address	investor.relations.usa@us.hsbc.com
General Email Address	investorrelations@hsbc.com

Foreign Address and Phone Numbers

Address:   8 Canada Square, London E14 5HQ, United Kingdon
Main Phone Number	+44-20-7991-8888
Inv Rel Phone Number	+44-20-7991-8041

Address and Phone Numbers

U.S. Representative	HSBC North America Holdings Inc.
Address:   26525 N. Riverwoods Boulevard, Mettawa, IL 60045
Main Phone Number	224-544-4400
Fax Number	847-383-3331
Investor Relations	224-880-8008
Toll Free Phone Number	Unknown

CEO - Stuart Gulliver

FN - Iain Mackay