The National Bank of Abu Dhabi is marketing a capital-protected commodity basket investment, following last week's launch of Abu Dhabi Islamic Bank's first commodity-linked structured note.
Head of fixed income Mark Watts, who is responsible for structured products at NBAD's asset management group, said investors should be given the opportunity to invest in commodities as part of a diversified portfolio.
The three-year product, developed by the asset management group, is a capped call linked to a basket comprising oil, gold, copper, corn, and sugar, which will pay 100% participation with a 124% cap.
Watts said the product follows two successful launches this year (emerging market currencies and multi asset class) and a gold-linked capital-protected product marketed in the UAE last summer.
NBAD 100% Capital protected 5-in-1 Commodity Basket Investment will be available to institutional and individual investors until 14 October. Minimum investment is AED100,000 (€27,000).
This product will be available shortly in Recent Additions (Offshore & Other).