ADIB launches soft commodity note
Abu Dhabi, April 19, 2011
Abu Dhabi Islamic Bank (ADIB), a leading Islamic financial services group, has launched its capital protected Soft Commodity Note.
The note provides an opportunity for investors to invest in this Murabaha based note, the profit of which is determined by the prices performance of cotton, corn and sugar.
Investors can get a maximum upside return of up to 18 per cent over 2 years with an annual payout. The minimum period of investment in the ADIB Soft Commodity Note is two years.
The Murabaha-based ADIB Soft Commodity Note is Shari’a-compliant and is offered to investors as an opportunity to a return based on the expected performance of three commodities - cotton, corn and sugar. These three commodities are directly impacted with the growth in population and buying power of the emerging economies of China, India, Asia and Africa. Prices also depend on climate conditions and energy prices.
Compared to a time deposit expected profit rate of between 1.74 and 1.98 per cent per annum, the ADIB Soft Commodity Note return, which is based on the performance of three soft commodities, is expected to be higher. In addition, the price performance of the three commodities offered in the note, since 2008 and in particular in 2010, has been excellent. We expect this strength to continue over the next two years, the bank said.
Subscription will be on a first come first served basis and is open until May 19, with the minimum subscription amount being $30,000. This investment is short term in nature, is liquid (only after one year lock-in period) and non-transferable.-TradeArabia News Service