Non-Negotiable

Procedures to Purchase New Issued MTNs issued by HSBC- UK.

As of February 1, 2023

Mr. Charles A. Smith is the legally Authorized Representative for the Owner/Seller of the
New Issued MTNs (Ten Year) from HSBC-UK. (Interest rate will be 6% with a special order by the
Seller/Provider but will be agreed and stated in the SPA). Pricing is 45% or slightly lower plus 2%
Fees. Recent strong demand for the MTN’s has been driving the price up.

Before the Owner/Seller sells the newly issued MTN’s for delivery to the Buyer, the
Buyer/Investor must pass Due Diligence and Compliance. Final Compliance is
completed by HSBC UK.
Client Information Sheet (CIS), Passport of Account Signatory Party and an Up-to-
Date Proof of Funds being sent to the Trade Platform will be requested only after
the initial Compliance.
Buyer having passed Compliance will communicate directly with the Owner/Seller
of the New Issued MTNs priced at an agreeable price to both Seller and Buyer.
POF and transacting Bank must be good and capable of sending MT103 SWIFTS of
the tranche size requested and handling the tranche schedule.
Then, the Trade Platform will purchase the instrument from their Licensed
Allocation at the Bank and present the Buyer with the contract, ISIN(s),
prospectus documents and counter CIS.
Buyer pays MT103 and delivery by MT760. Hard Copy to follow. If the Buyer has
Bank Accounts in the same Bank as the Owner/Seller, ledger to Ledger can be
applicable with internal SWIFTS., however, POF and engagement is the same.
Minimum Face Value tranche size is 100million USD/Euro and the Buyer must
purchase a contract minimum of One Billion USD/Euro. Buyer’s Funds in the
Buying Bank Account must be organized to fulfill contract purchase.
Owner/Seller will sell into a Buyer’s Line of Credit provided it has been activated
from another Asset owned by the Buyer/Investor.
Owner/Seller will also deliver the MTNs to the Buyer via Brussels Euroclear DVP or
SWIFT Bank to Bank. No Desk-to-Desk transactions for Primary MTN’s.