Archive for the 'Citibank' Category
Citibank offers the opportunity to invest in Central European shares and protect capital
Citibank a.s. is offering investors access to the stock markets of Central Europe through its new “Region Structured Bond, which combines 100% capital protection at maturity to protect invested funds against a bear market while at the same time offering the chance to participate in the anticipated growth in value of these stock markets. The bonds are available for subscription until 19 July 2006. The minimum investment is only CZK 30,000.
The bond has a two-year maturity period. Upon maturity, the investors will receive their original investment and additional appreciation that will equal to any potential positive developments in the stock markets. This will depend on the performance of the CECE Index (an index of Central European shares – Czech, Polish and Hungarian) compiled by the Vienna Stock Exchange. Investment returns will equal the growth in the index up to a maximum of 34.99%. Should the index grow in excess of this maximum, the investor will receive a total appreciation of six percent plus their original investment at maturity. Should performance of this index be negative during those two years, the investors will still get 100% of their investment back at maturity.
“Citibank aims to offer investment opportunities to all types of investors – from conservative ones to those willing to accept higher levels of risk. The Region Structured Bond offers the conservative investors an opportunity to gain higher earnings than standard savings products provide now, due to a low inflation rate in the Czech Republic and all over Europe, which in turn leads to low interest rates. In addition, the investors can participate in the potential rise of the shares while not risking any loss of their investment, and this is quite important given the current increased volatility on the stock markets,” explains Alexandra Talířová, Investment Product Manager, Citibank a.s.
The bond, which is intended solely for distribution on the Czech market, is issued by Citibank International Plc in London, which also ensures the liquidity of the product. The bond may be sold through the issuer prior to its maturity at the current market price but 100% capital protection will only be available if the bond is held to maturity.
“Central European economies are growing three times faster than advanced European Union countries and are catching up with their economic standards. This convergence story will continue in the next few years. The promise of strong economic growth obviously means good profit opportunities for local businesses. Investing in the Region Structured Bond is one way to participate in the growth,” says Miroslav Plojhar, Chief Analyst, Citibank a.s.
