Standard Chartered UAE launches Khazana Note

"This ground-breaking product, with a six-year holding term, is targeted specifically at our international banking clients," explained Ray Ferguson, Chief Executive, Standard Chartered UAE. "Being the first in the market with a GCC/Middle East themed capital protected product, once again demonstrates our ability to lead the way."

Societe General Asset Management, a Standard and Poor's AA rated issuer, is providing the product to Standard Chartered UAE on an exclusive basis and managing the Khazana Note fund basket.

"Khazana Note is the first product in the GCC and Middle East that allows investors a capital guaranteed route to some of the best performing markets worldwide," added Ferguson. "Though we require a total initial investment of US $15 million for the structure to go ahead, we are extremely confident, given our first mover advantage and the consistent demand for regional products, that we can exceed this target."

Khazana Note's performance is linked to a dynamic basket of funds including, the Morgaon Stanley Emerging Europe and Middle East Fund, the Shuaa Capital Arab Gateway Fund, the Goldman Sachs Enhanced Cash Fund and Schroders SSF Dynamic Reserve Fund.

"Investors can look forward to positive growth in the basket," explained Ferguson. "The note has been structured around some very strong funds as evidenced by the strong regional reputation and stellar performance of the Shuaa Capital's Arab Gateway fund. With oil prices at an all-time high and recent corrections in several GCC economies, the time is right to gain exposure to these powerful market conditions."

The minimum investment in Khazana Note is US $20,000 with a nominal amount of US $1 per note. The offer period ends on September 18 this year, with the issue date scheduled for September 28 and the maturity date on September 28, 2011.