Abu Dhabi Bank moves to cash on commodities

Abu Dhabi Islamic Bank (ADIB) has launched its first 100% capital-protected note linked to commodities in a move to offer investors an opportunity to bet on the anticipated strengthening of commodity prices in the coming years.

ADIB's CEO, Tirad Mahmoud, said the launch had been well timed as commodities are expected to strengthen further.

ADIB Diversified Basket Note is a three-year structure offering a potential 5% pa depending on the performance of the underlying commodity basket, which comprises gold, oil (Brent), lead, nickel, aluminium, cotton, corn and sugar. The product also includes a memory feature through which the highest return registered will be registered on the next annual observation date. The product will also have daily liquidity after an initial one-year lock-in period.

Calls to ADIB to establish the counterparty provider for the product were not returned by press time. The product will be open until 13 October. Minimum investment is $30,000.

This product is available in Recent Additions (Offshore & Other).