Capivest has announced the next in its series of treasury structured products, with the launch of the Capivest Shariah Index, linked to the S&P Europe 350 Shariah Index, in cooperation with a leading global financial institution. The Capivest Shariah Index offering of $50 million was officially launched at the end of April 2009. The product is designed to meet the growing demand for Islamic investment products and to provide investors with a direct exposure to the S&P Europe 350 Shariah Index at a time when prices are at the lowest witnessed in many years, without any risk to their initial capital. This unique investment opportunity has a four year maturity, provides investors with 100 percent capital protection and 70 percent participation in the average quarterly performance of the Index at maturity, with a minimum of 4 percent coupon at maturity in the unlikely event that the Index returns less than the minimum protected coupon. Nabil Mohammed Hadi, chief executive officer of Capivest, said “given the present market conditions, we have an excellent track record for our treasury products which are focused on market growth areas.” Hassan Habib Hassan, executive director of Treasury and Financial Institutions at Capivest, said “the launch of the Capivest Shariah Index is another example of the Bank's commitment to meeting the increasingly sophisticated needs of investors. Despite the current state of financial markets, Capivest's treasury products have recorded positive performances. The Shariah-compliant Capital Protected Equity Fund, which was the first treasury product launched by Capivest, won the “Deal of the Year Award-Bahrain” from The Banker magazine in 2005. While the second treasury product will be due for exit towards the end of this year and is expected to return to investors 100 percent of the invested capital in addition to a 10 percent profit.”
