Qatar National Bank (QNB) has launched QNB Note 2 (Qatar Opportunities), a new fully protected structured note aimed at Qatari and non-Qatari investors living in Qatar or overseas.
QNB Note 2 is a three-year investment linked to the performance of a basket of eight European and US stocks that are listed on the equity markets of their respective countries of origin, including Total (France, energy), Vinci (France, industrials), Siemens (Germany, industrials), ArcelorMittal (Netherlands, materials), Iberdrola (Spain, utilities), Royal Dutch Shell (UK, energy), ConocoPhillips (US, energy) and Halliburton (US, energy).
Returns are linked to the performance of the underlying basket, in which Total and ConocoPhillips have a 50% weight (25% each) with the reminder of the stocks having a 12.5% share of the total investment. QNB said that performance will be measured on an annual basis and will be paid in the form of annual coupons linked to the average performance of the underlying basket. The annual performance of each individual stock is capped at 7%.
The Qatari bank said that the eight international company stocks have been selected on the basis of their close ties to Qatar, either due to their existing local presence or due to substantial business interests in the country.
The bank also said a further aim of the structured note is to provide satisfactory geographical diversification.
The minimum investment for the QNB Note 2 is QAR20,000 ($5,400).