Banco Safra in bolstering its issuance in the domestic market with a new structured product, the fourth offering to be released by the bank in the past six months.
Safra Innovation Fund II Capital Protegido Funvdo de Investimento is a three-year capital-protected investment fund linked to Apple stock. The product, which is based in a shark fin payoff profile, will pay a participation of 100% of the rise of the underlying over the term if the final level is greater than the initial level and the protection barrier has not been breached. If the barrier is not breached and the final level is lower than the initial level, the product pays back only capital. If the positive barrier is breached however, the variable return is a fixed rate equal to 36% pa, independent of the final level of the underlying.
The first tranche of this series, which was also linked to Apple shares, was marketed in November 2011 and sold BRL2.24m ($1.2m). Since then, Safra launched a similarly-structured product linked to the price of gold. This reaped much interest from the Brazilian community, selling BRL108.66m ($58.3m) during its one-month subscription window.
As reported by SRP, Apple's shares experienced a significant plunge at the beginning of last week and the week before.
Safra Innovation Fund II Capital Protegido Fundo de Investimento is available for investment until 1 June 2012.
Enquiries made to Banco Safra were not returned by press time.