Nordea Bank has launched its inaugural fixed upside retail products in Finland. The five-year capital guaranteed products, Indeksilaina Kiina Nousee Perus and Indeksilaina Kiina Nousee Ekstra are linked to the fortunes of a basket of shares of 12 companies comprising China Life Insurance, CNOOC, PetroChina, Bank of China, Samsung, Kone, Wharf Holdings, Nokia, Ericsson, Caterpillar and Toyota Motor.
Four best-performing shares are assigned growth of 60%. At maturity the par-issued product and the premium version, issued at 110%, offer a minimum capital return of 100% plus 70% and 140% of the rise in the basket, respectively.
The fixed upside payoff is relatively widely used in Finland. Forty-eight of last year's 175 launches used it, and 12 products of the 34 retail launches recorded this year so far, have fixed upside as part of the structure.
These products are available on the Finnish database.