ADIB launches diversified basket note
Abu Dhabi, September 13, 2011
Abu Dhabi Islamic Bank (ADIB) has announced the launch of its diversified basket note that provides an opportunity to small or large investors to profit from the anticipated strengthening of prices of eight leading commodities.
The 100 per cent capital protected 'ADIB Diversified Basket Note' offers an investment plan of three years in the equally weighted commodities of gold, oil, lead, nickel, aluminum, cotton, corn and sugar, said a statement from the bank.
The Shari’a-compliant and Murabaha-based note allows investors to lower their portfolio risk through diversifying into leading commodities and profit from their expected strength, it stated.
According to ADIB, the subscription will be on a first-come-first-served basis and will be open until October 13, with the minimum subscription amount being only $30,000.
The investor’s capital is protected 100 per cent in case of negative performance of the commodities, the bank said.
The investment is non-transferable but liquidity is available after an initial one year lock in period, it added.
Tirad Mahmoud, CEO, ADIB said: 'Commodities are expected to strengthen further. We are coming to the market with a well timed and safe investment opportunity that is expected to be well received by investors.'
'The fact that we are offering 100 per cent capital protection indicates the confidence in commodities performance over the next three years,' he remarked.-TradeArabia News Service