Portugal's Caixa Geral de Depósitos (CGD) has raised €200m in just a week for Caixa TaxaMix Julho 2010/2013. Duarte Mendes, who works in the structured products team based at CGD London, said the bank had undertaken a low-profile marketing campaign, through mail distribution and online advertising, to attract liquidity for the bank from Portuguese retail investors. This is the bank's best-selling structured product so far this year.
The three-year capital-protected security is a capped call linked to 12-month Euribor, paying a coupon of 2% AER on the first anniversary, the underlying plus 0.25%, floored at 2.25% and capped at 3.25% AER, on the second anniversary, and the underlying plus 0.75%, floored at 2.50% and capped at a 4% AER, on the third.
CGD is no stranger to volumes of this magnitude. Last year it raised €538.6m for Switch CGD 2009/2019, a ten-year security with a callable option after the fifth year and a flip-flop strategy linked to 12-month Euribor. It gathered €500m for a Euribor-linked deposit, Caixa Aforro Mais, whose putable feature was exercisable on any interest payment date. In 2008 CGD 2008/2018 raised €380m. The product had a very similar strategy to Switch CGD 2009/2019.
These products are available on the Portugal database.