ADIB launches new capital-protected note
Abu Dhabi, June 3, 2014
Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial institution, has launched a new capital-protected note, following the first car manufacturing note issued by the bank earlier this year.
The note, which matures in 18 months, provides 100 per cent capital protection at maturity to minimise risk, with an expected return of up to 10 per cent.
It is currently open for subscription with a minimum amount of $30,000.
The note offers the opportunity to invest in leading car manufacturers, including Toyota Motors, Hyundai, KIA Motors, BMW and TATA Motors.
The automobile sector has performed well in 2013, and during the first quarter of 2014, sustained by recovering demand in Asia and the United States. Despite the share price rises in 2013, the majority of sell-side analysts retain “buy” recommendations on the major auto stocks.
The previous investment products include three capital-protected gold notes and two capital-protected oil notes that matured at the beginning of 2013.
The one-year gold note produced a total return of 15 per cent, while slightly lower-risk notes returned four and six per cent. One of the two-year oil notes produced a 17.9 per cent return, with the other generating a 1.21 per cent 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. - TradeArabia News Service