Lithuanian AB Bank Finasta has raised just under €1m (LTL3.4m) for its first two euro-denominated income bonds linked to the S&P GSCI Agriculture index.
Denis Cyba, derivatives manager in the bank's treasury, told SRP the bank had slightly bigger expectations in terms of sales, but confirmed it will soon launch further products. "It is important to get the timing right as investors are now aware of market performance," he said.
The two S&P GSCI Agriculture bonds are three-year capital-guaranteed income products linked to the performance of the S&P GSCI Agriculture index. The products will pay conditional coupons of 7.75% and 9.42%, respectively, if on any annual observation date the underlying has grown at least 10% from a barrier of 85.01%. The bond paying 9.42% pa has a risk premium of 2%.
This is the second structured product from Bank Finasta in Lithuania. In 2010, it marketed two three-year bonds linked to the Eurostoxx Banks index.
The S&P GSCI Agriculture bonds struck on 16 May. Minimum investment was €100. The capital guarantee is provided by Bank Finasta. Both bonds can be sold in the secondary market.