ADIB launches capital-protected silver notes

Press release
Published November 5th, 2013 - 07:24 GMT

Abu Dhabi Islamic Bank (ADIB), a top-tier Islamic financial institution, has launched new capital-protected silver notes to allow customers to invest in a metal that analysts believe may soon see a price rebound. 

The Shari’a-compliant notes, which mature in two years, provide 100 percent capital protection at maturity to minimize risk. The notes are currently open for subscription with a minimum amount of US$30,000. 

Unlike gold, which is regarded as an inflation hedge and a safe haven in an uncertain economic environment, silver is extensively used in industrial production, which accounts for 46 percent of total demand for the metal. 

Improvement in the global economy should bode well for the silver price, which technical analysts believe has reached a strong support level at US$ 19.77 per ounce, following a 33 percent fall in the last year. Silver also tends to have a high correlation with gold, which has seen a price rebound recently. 

ADIB’s structured notes have been well received by investors, particularly three capital-protected gold notes and two capital-protected oil notes that matured at the beginning of this year. The one-year gold note produced a total return of 15 percent, while slightly lower-risk notes returned 4 percent and 6 percent. One of the two-year oil notes gave a 17.9 percent return, with the other produced a 1.21 percent return. 

This latest offering is part of ADIB’s wealth management approach to provide customers a diversified suite of investment solutions. The strategy involves developing and delivering best-in-class investment solutions tailored to meet the financial needs of customers through effective financial planning and asset allocation.

Background Information

Abu Dhabi Islamic Bank

​ADIB is committed to being a responsible corporate citizen and to managing its business in a way that creates value for customers, shareholders, employees and the communities in which it operates.

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