Mashreqbank has launched Libor Select, a new four-year capital guaranteed investment product targeting savers who are disillusioned by the recent low rate of returns from fixed deposits and uncertainties of share markets, according to a bank press release.
MashreqInvestment Libor Select is 100 percent principal guaranteed and offers investors a guaranteed return of 4.5 percent per annum for the first six-month period. It will also pay the same return for each subsequent six-month period that the six-month US$ LIBOR (London Inter Bank Offer Rate) remains at or below preset barriers on the fixing dates.
In case the six-month USD LIBOR goes above the barrier customer is guaranteed a return of 1.00 percent per annum, which is what he or she earns on a fixed deposit today. “The US Libor has been below 1.5 percent for the past five months and has not risen above 2.5 percent since September 2001.”
“Analysts see little hope for an increase in the near future as the world economy is still exerting a downward pressure on interest rates,” said Nabeel Waheed, Division Head, Treasury and Capital Markets, Mashreqbank.
“While interest rates continue to remain depressed, MashreqInvestment Libor Select aims at providing a fully principal guaranteed investment vehicle that offers savers up to 4.5 percent per annum, paid out bi-annually,” said Waheed.
MashreqInvestments Libor Select is open to subscription up to April 27, 2003, or earlier if fully subscribed. The minimum investment requirement is of $5,000 and in multiples of $5,000 thereafter.
Waheed added that investors who unexpectedly need cash before the maturity of the investment need not be concerned about penalties as they can borrow or take an overdraft facility against their investment. Over the past 24 months Mashreqbank has launched over 75 investment products. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
