AmIslamic Bank in Malaysia has launched a Shariah-compliant negotiable instrument of deposit linked to the energy sector.
AmEnergy NID-i is a two-year, capital protected deposit linked to the performance of three energy themed commodities, namely oil, soybean (biodiesel) and sugar (ethanol). At maturity, investors will gain a participation in the worst performing underlying, with a strike at 75% of the initial level.
AmIslamic CEO Mahdi Murad said the product would enable investors to ride on the growth of energy-themed commodities while protecting them from the high volatility and unpredictability of the commodity markets.
It is the bank's fourth structured deposit and its shortest to date. AmDaily Opportunities NID-i, AmMomentum Select NID-i and Active Commodities NID-i, which were launched over the last three years all had terms of four years.
The product has a targeted size of RM$100m (US$33m) with a minimum investment amount of RM$70,000 ($23,000). The offer closes on 5 May.
This product appears in Recent Additions (Malaysia).