Banamex has released a new income-formatted, capital-protected digital range product linked to the MXN/USD exchange rate.
The Income No Touch USD/MXN - 5% pa - 03 May 2012 raised MXN 50m ($3.74m) during its offer period. This type of income offering has been seen only on three other separate occasions in the Mexican structured products market and is the first since December 2009, according to SRP data.
The product offers a monthly coupon of 5% pa if the exchange rate remains between 12.36 and 13.5 throughout the applicable observation period. Otherwise, the coupon for that period is zero. At maturity, the product returns capital.
During 2012, Banamex has been the third most successful provider in the Mexican market, with 222 products. Sales total MXN 7.21bn ($535m), averaging at MXN 32.63m ($2.42m) per product.
SRP data also shows that one third of the products issued by Banamex are digital range structures, but only four of those take an income format.