Abu Dhabi Islamic Bank launches 'Diversified Basket Note'

Abu Dhabi Islamic Bank (ADIB) said it is launching a 100 per cent capital protected ‘ADIB Diversified Basket Note’ that provides opportunity to small or large investors to profit from the anticipated strengthening of prices of eight leading commodities.

The note offers an investment plan of three years in the equally weighted commodities of gold, oil, lead, nickel, aluminum, cotton, corn and sugar, the statement said.

The Shari’a-compliant and Murabaha based ADIB Diversified Basket Note allows investors to lower their portfolio risk through diversifying into leading commodities and profit from their expected strength. Subscription will be on a first come first served basis and is open from September 10 2011 until October 13 2011, with the minimum subscription amount being only $30,000.

The investor’s capital is protected 100 per cent in case of negative performance of the commodities. The investment is non-transferable but liquidity is available after an initial one year lock in period.

Tirad Mahmoud, CEO, ADIB said in the statement, “Commodities are expected to strengthen further. We are coming to the market with a well timed and safe investment opportunity that is expected to be well received by investors. The fact that we are offering 100 per cent capital protection indicates the confidence in commodities performance over the next three years.”