The investment is 100 per cent principal guaranteed and offers investors a confirmed return of five per cent per annum for the first six-month period of its five-year tenure. For each subsequent six-month period, the fund will pay a five per cent return for each day the US$ LIBOR (London Inter Bank Offer Rate) remains at or below preset barriers.
During the second six-month period the preset barrier has been set at 2.5 percent, rising by half a per cent for each subsequent six-month period, reaching 6.5 per cent in period 10.
“We find LIBOR linked products to be extremely popular with the cautious investors, especially in the current market scenario, and Mashreqbank has been catering to this need for over a year now,” said Nabeel Waheed, Division Head, Treasury and Capital Markets, Mashreqbank.
“Few financial pundits see a return to higher interest rates any time soon, so our Star investment offers an attractive alternative to regular deposits.”
The Mashreq Star investment is available up to 24 March 2003, or earlier if fully subscribed. It has a minimum investment requirement of US$5,000 and multiples of US$5,000 thereafter.
Waheed added that investors who unexpectedly need cash before the maturity of the investment need not be concerned about penalties as they can borrow or take an overdraft facility against their Star investment.
Over the past 18 months Mashreq Bank has launched over 60 successful investment products with very impressive results.
Tuesday, March 11- 2003 @ 16:29 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.