Rabobank Nederland today launched its first structured note for local retail investors linked to economic growth in Africa.
The Dutch bank’s Rabo Afrika Note offers exposure to the UBS African Index, which comprises the shares of 15 companies that generate a large part of their income in Africa. The index is reviewed every six months and re-weighted if necessary by the daily trading volumes of the shares over the past three months.
At present, 70% of the index is directly invested in African companies. South Africa is most strongly represented, with a 60% weighting, followed by Egypt with 10%. The remaining 30% of the index comprises European companies that generate a considerable part of their turnover in Africa. The maximum weighting in the index is 15% for an African share and 8% for a non-African share.
The seven-year capital protected medium-term note provides 100% participation in the performance of the index, subject to 18-months back-end averaging.
This is the second time this year there has been a product linked to the UBS African Index on the Dutch database and there are signs internationally that the continent is growing as an investment theme. Earlier this year, UBS used the index as part of a basket for its EurAfrica Certificates.
This product is available now in Recent Additions (Netherlands).
