According to the bank, investors can get a return of up to 22% at maturity via the opportunity to diversify their portfolio and invest in BRIC currencies for two years.
The Murabaha based, ADIB BRIC Currencies Notes is Shari’a-compliant and is offered to investors as an opportunity to profit from the expected strength of the four emerging market currencies.
ADIB said subscription will be on a first come first served basis and will be open until February March 3rd 2011, with the minimum subscription amount being only $30,000.
ADIB said its BRIC Currencies Notes has a clear and set returns policy. In case BRIC currencies grow 8% or more over the US Dollar, investors will get a return same as the growth percentage, up to a limit of 22%.
If growth is between 0 and 8%, the investors will receive a return fixed at 8%. If the growth is nil, investors get their original capital back.
In case of a negative performance the investors are assured of 97% of their original capital.
This investment is for two years and non-transferable.
Liquidity is available after an initial one year lock in. Since the returns are in part dependent on BRIC currencies performance on maturity, it is not possible to place a value on the returns until maturity date, said ADIB.
