For careful investors seeking better returns without the risks inherent in stocks and bonds, the three-year MashreqInvestment’s Olympia guarantees 100 per cent capital protection and attractive earnings potential.
Investors earn their interest in the form of coupons paid semi-annually, starting at four per cent in the first year and rising to five per cent in the second and six per cent in the third year, provided the reference index, the USD Libor rates, stays at or below specified limits. These are capped at three per cent in year one, four per cent in year two and five per cent in year three.
“Investors stand to gain greater returns than what they would earn in interest from a fixed deposit account, with no risk at all. The best case scenario for this investment would be if it is redeemed at maturity and the six-month USD Libor rates stay at or below the respective limits throughout the tenure of the investment, which statistically appears very probable,” said Nabeel Waheed, Head of Treasury and Capital Markets, Mashreqbank.
Waheed noted that the current six-month USD Libor rate is 1.38 per cent as of May 2004, and has not been above three per cent since September 2001.
The minimum investment in Olympia is US$5,000 and in denominations of $5,000 thereafter. The deadline for subscribing is 19 May 2004, for maturity on 21 May 2007 and redemption eight days later. (menareport.com)
© 2004 Mena Report (www.menareport.com)
