CIMB in Malaysia has announced the launch of two structured products linked to banking stocks aimed at enabling local investors to participate in a recovery of the sector.
Rebound is a floating rate negotiable instrument of deposit (FRNID) linked to four banks, including Citigroup, Merrill Lynch, UBS and Morgan Stanley.The principal protected product offers a choice of two, three and five-year options paying, respectively, 15%, 23% and 45% growth at maturity provided the basket performance exceeds a predetermined amount.
“This product affirms CIMB Bank’s ability to capitalise on global market developments and provide our customers access to these investment opportunities in a timely manner when such opportunities are usually only available to large global investors,” said CIMB’s group treasurer Lee Kwan. CIMB Bank said it would offer liquidity on the deposit.
Rebound FRNID is sold via CIMB Bank branches and CIMB Private Banking between 23 December and 7 January.
CIMB credits structured product sales in Malaysia as being a driving force behind its improving sales ratios over the last few years, growing from two to between three-and-a-half and four products per customer, it revealed recently in an interview with Malaysia’s StarBiz news service. It also said that it had recently launched Indonesia’s first rupiah-denominated structured product.
