DnB Nord in Lithuania is marketing Basketball Deposit Plan to local savers with an interest in the forthcoming FIBA World Championship which starts on 28 August in Turkey.
The 50:50-style plan offers 5% (annualized) over six months on half on initial capital plus 0.3% for each victory by the Lithuanian basketball team, which is sponsored by bank.
The remaining 50% is placed in a three-year principal protected deposit that pays a 5% annualized coupon on a quarterly basis provided Russia's RDX, Canada's S&P TS and Australia's S&P/ASX 20 indices are at least 5% above their strike values. Otherwise, no interest is paid for that quarter.
Last year, a similar product focused on the European Basketball Championship in Poland raised LTL45m (€13m).
"With the market facing the declined deposit interests we have been looking for the ways of providing our clients with a possibility of not only enjoying the heat of the World Championship but also to earn more with every victory by the National Team. For this purpose we have developed a savings plan that corresponds to the concept of DnB Nord Money factory that allows to count victories that turn into money together," said Lijana Žmoginaitė, sales manager at DnB Nord, which is owned by Norway's DnB Nor and Germany's Nord LB.
The product is available until 27 August and the minimum investment is LTL1,000 (€290). The term deposit may be placed in litas or euros but the structured deposit must be in Litas.