Israel's Bank Leumi today closed two dollar- and shekel-denominated structured deposits linked to the performance of the Amazon.com share.
The two-year Shekel Structured Deposit pays 80% of the increase of the underlying share if it grows by up to 53% (non-inclusive) or a flat 3% coupon if the share price increases by 53% or more versus strike on any day throughout the term. Leumi is also selling a dollar version of the structure paying 70% participation with a 37% barrier (non-inclusive) and an alternative coupon of 0.30%.
Leumi's investment rationale is that Amazon, the largest online retailer in the world, has managed to generate annual growth exceeding 20% over the past eight years. "In 2008 and 2009, during the crisis, the company presented growth rates of 29% and 28%, respectively. The recovery of the American consumer and the increase in online consumption in the developing markets such as China, in which the company has a leading status, will benefit the company. We reiterate that an investment in the share would produce value for as long as the company continues to meet the high expectations that the investor public has set for it," it said.
Both products strike today. Minimum investment was NIS15,000 ($4,012) for the shekel-denominated version and $10,000 for the dollar-denominated version of the deposit.