Emirates Islamic Bank Introduces The Emirates MENA CPPI Note
Dubai, UAE – July 8, 2008: Emirates Islamic Bank (EIB), one of the leading Islamic financial institutions in the region, has added to its portfolio of innovative investment offerings yet another unique product; the Emirates MENA CPPI Note, a 3 year Shari’a compliant structured note linked to the performance of the Emirates MENA Opportunities Fund – one of the various in-house managed funds that was launched by EIB 2 years ago and has had an impressive performance since launch.
The MENA CPPI Note has been developed in conjunction with Deutsche Bank with the two-fold aim of meeting the increasing demand for Shari’a compliant structured products and providing a high degree of capital protection over the Emirates suite of funds. It offers potential investors an opportunity to invest the Middle East and North Africa (MENA) region. “The MENA CPPI Note has been designed keeping in mind the current market scenario across the MENA region” said Mr. Faisal Aqil, GM Retail Banking at Emirates Islamic Bank. “With the market facing high volatility at the moment, the Note ensures 90% capital protection for investors at maturity, giving them a perfect opportunity to participate in the economic growth of the region with a limited risk to capital” he added.
Like the other products unveiled by the bank, the MENA CPPI Note will also follow a Shari’a compliant structure and will be professionally managed by a team of fund managers. The Note aims to achieve long-term capital growth from a diversified portfolio of Shari’a compliant equity securities and other assets primarily in the GCC and the MENA region. The Note’s exposure to the Emirates MENA Opportunities Fund at inception will be approximately 60%, but this may increase to a maximum of 150% during periods of consistent out performance. A mechanism has also been put in place for the Note to switch allocation from the Fund to the protection portfolio in periods of underperformance. The Note can be bought and sold at market value in the secondary market.
