UK structured product provider NDF said a knockout plan launched last December is ‘on track to mature early’ and pay investors capital plus 8.75%.
Growth Plan Sep 05 will knockout on 22 December provided the DJEurostoxx50 and the FTSE100 do not fall below their initial levels of, respectively, 3591 and 5597.Otherwise, the products will continue to run with potential knockouts each year until 2010. There is a 50% barrier on the downside, which once breached means capital return at maturity is reduced on a one for one basis in line with the worst-performing index.
Ronan Gelling, marketing manager at NDF Administration, said, “These Indices are currently trading over 10% and 18% above their respective starting levels so we are quietly confident the plan will mature early.”
NDF, which distributes its products via intermediaries, has just started marketing Growth Kick Out Plan November ’06, this time linked to the FTSE100 and the Nikkei225.
The new plan, which is launched via a Dublin special purpose vehicle, offers potential knockouts paying 11% per annum (non-compounded) provided both indices have not fallen since inception. It also offers capital protection provided neither falls by 50% or more. Otherwise, it offers a capital return at maturity reduced on a one for one basis with the worst-erforming index.
The plan, which is Isable and Pepable, will be available from 7 November.
Growth Plan Sep 05 is available on the UK database. Kick Out Plan November ’06 appears in Recent Additions (UK).
