Mashreqbank is now offering Libor Force, the latest in the series of Capital Guaranteed Investments. Libor Force offers quarterly returns which grow from a guaranteed 4.5 percent pa in the first quarter to 9.5 percent pa linked to London Interbank Offer Rate (LIBOR) in its sixth and final year.
The returns are subject to the LIBOR remaining at or below preset barriers, a structure that has become popular with investors since interest rates have fallen to their lowest levels in recent history. With interest paid out to investors at the end of each three-month period, the investment yields a guaranteed 4.5 percent per annum in the first period.
For the remainder of its first year period, Libor Force will pay a return of five per cent per annum subject to the six-month dollar LIBOR staying at or below two per cent on the quarterly fixing dates. As of May 25, the current six month dollar LIBOR stands at 1.21 percent.
During its second year, the investment pays 5.5 percent per annum while the LIBOR stays at or below three percent on the quarterly fixing dates, climbing to 6.5 percent return in year three when the LIBOR barrier is set at 3.5 per cent on the quarterly fixing dates.
The pre-set LIBOR barrier rises to 4.25 percent in year four, five percent in year five and 5.75 percent in year six. During the corresponding periods the interest rate offered climbs from 7.5 to 8.5 to 9.5 percent per annum respectively.
In addition to quarterly paid out returns, the investment is 100 percent principal guaranteed and can be called quarterly at par plus the coupon due for the previous period. The Investment is available to the public until June 22, or earlier if over subscribed, and has a minimum investment requirement of $5,000 and in multiples of $5,000 thereafter. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
