National Australia Bank has launched the latest instalment of its Principal Series range of structured products offering Australian investors exposure to the S&P/ASX200.
NAB Principal Series ASX200 Focus offers a choice of two strategy options. Strategy A is a three-year deferred purchase agreement with potential to earn up to two annual conditional coupons of 3% pa, provided the level of the index has not fallen since inception. At maturity, the investor will receive initial capital along with participation in the positive final performance of the index, capped at a maximum of 40% above the initial index level, minus the hurdle rate of 6%.
Strategy B offers three potential coupons of 4% pa provided the index has not fallen since inception over a term of four years. At maturity, investors will receive initial capital along with the growth of the index capped at a maximum of 90% of initial index level, minus the hurdle rate of 12%.
NAB is an infrequent issuer of structured products, with its last issue being NAB Principal Series ASX200 Choices in August 2009.
The product is available until 25 June with a minimum investment of A$10,000 ($9,000) for each strategy.
This product is available now in Recent Additions (Australia).