ADIB launches new note for investment in car firms
Abu Dhabi, June 9, 2014
Abu Dhabi Islamic Bank (ADIB) has launched a new capital-protected note for investment in global car manufacturers including Toyota, Hyundai, KIA, BMW and Tata Motors.
The Emirati bank's move comes following the huge success and high demand for its first car manufacturing note issued earlier this year, reported Emirates News Agency (WAM).
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. The note is currently open for subscription with a minimum amount of $30,000.
According to experts, the automobile sector has performed well in 2013 and also for the first quarter this year, sustained by recovering demand in Asia and the US.
A recent JPMorgan research note predicted a cyclical upturn for the global auto industry, with robust performance from BMW because of the popularity of its new models, while Hyundai is expected to see its market share rise due to its newest Sonata model.
ADIB's structured notes have been well received by investors. In January, the bank issued its first capital-protected car manufacturers note, with an expected return of up to 8 per cent.