MashreqInvestment Libor Select offers 4.5 per cent return per annum

MashreqInvestment Libor Select is 100 per cent principal guaranteed and offers investors a guaranteed return of 4.5 per cent per annum for the first six-month period. It will also pay the same return for each subsequent six-month period that the six-month US$ LIBOR (London Inter Bank Offer Rate) remains at or below preset barriers on the fixing dates. In case the six-month USD LIBOR goes above the barrier customer is guaranteed a return of 1.00 percent per annum, which is what he or she earns on a fixed deposit today.

"The US Libor has been below 1.5 per cent for the past five months and has not risen above 2.5 per cent since September 2001. Analysts see little hope for an increase in the near future as the world economy is still exerting a downward pressure on interest rates," said Nabeel Waheed, Division Head, Treasury and Capital Markets, Mashreqbank.

"While interest rates continue to remain depressed, MashreqInvestment Libor Select aims at providing a fully principal guaranteed investment vehicle that offers savers up to 4.5 per cent per annum, paid out bi-annually," said Waheed.

MashreqInvestments Libor Select is open to subscription up to 27 April 2003, or earlier if fully subscribed. The minimum investment requirement is of US$5,000 and in multiples of US$5,000 thereafter.

Waheed added that investors who unexpectedly need cash before the maturity of the investment need not be concerned about penalties as they can borrow or take an overdraft facility against their investment.

Over the past 24 months Mashreqbank has launched over 75 successful investment products with very impressive results when compared to fixed deposits and equity funds.

ENDS