MashreqInvestments launches Libor Force

Libor Force offers quarterly returns which grow from a guaranteed 4.5 per cent p.a. in the first quarter to 9.5 per cent p.a. linked to Libor in its sixth and final year.

The returns are subject to the London Interbank Offer Rate (LIBOR) remaining at or below preset barriers, a structure that has become popular with investors since interest rates have fallen to their lowest levels in recent history.

With interest paid out to investors at the end of each three-month period, the investment yields a guaranteed 4.5 per cent per annum in the first period.

For the remainder of its first year period, Libor Force will pay a return of five per cent per annum subject to the six-month US$ LIBOR staying at or below two per cent on the quarterly fixing dates. As of 25 May the current six month US$ LIBOR stands at 1.21 per cent.

During its second year, the investment pays 5.5 per cent per annum while the LIBOR stays at or below three per cent on the quarterly fixing dates, climbing to 6.5 per cent Return in year three when the LIBOR barrier is set at 3.5 per cent on the quarterly fixing dates.

The pre-set LIBOR barrier rises to 4.25 per cent in year four, five per cent in year five and 5.75 per cent in year six. During the corresponding periods the interest rate offered climbs from 7.5 to 8.5 to 9.5 per cent per annum respectively.

In addition to quarterly paid out returns, the investment is 100 per cent principal guaranteed and can be called quarterly at par plus the coupon due for the previous period.

The Investment is available to the public until 22 June, or earlier if over subscribed, and has a minimum investment requirement of US$5,000 and in multiples of US$5,000 thereafter.

"Mashreqbank has launched more than 75 successful investment products in the last 24 months. While returns on fixed deposits remain low, our strategy has focused on providing principal guaranteed investments that maximize earning potential without incurring any risk to the capital," said Nabeel Waheed, Head of Treasury and Capital Markets, Mashreqbank.