Absa Capital, the investment banking division of Barclays Capital-owned Absa Bank Ltd, has launched a new range of structured products on South Africa's domestic stock market, the Johannesburg Stock Exchange.
An Absa Capital spokesperson in Johannesburg told SRP the move is aimed at increasing the firm's market share in South Africa's structured products market, which is currently dominated by both Absa Capital and Investec: "This is our first set of listed products but we are planning a whole new range of listed investments," he said.
Absa Capital's Long Equity Investment Plan (LEIP) Securities range is now available in a listed format with two tranches open for subscription: Wealth Accelerator Issue 1, a four-year 50% soft-protected capped call linked to the performance of the FTSE/JSE Top 40 paying 200% participation on the performance of the index with a 65% cap; and Dual Index Protector, a five-year growth structure linked to a basket of indices featuring the Eurostoxx50 and the S&P500 paying 100% participation in the best performing index.
The bank has recently closed three products in its non-listed range including Commodities Protector Issue 2, a four-year capital-protected product offering 130% participation in a basket of commodities comprising sugar, corn, soybeans, Brent crude, RBOB gasoline, copper, nickel and tin; Wealth Protector Issue 10, a four-year capital protected capped call offering 100% participation in the FTSE/JSE Top 40; and Autocall Issue 3, a three-year 60% soft-protected knockout linked to the FTSE/JSE Top 40 headlining a 12.5% coupon.
Wealth Accelerator and Dual Index Protector will be available for investment until 31 October. Minimum investment for these products is ZAR100,000 ($12,644).
These products appear in Recent Additions (Offshore & Other).