OREANDA-NEWS. May 26, 2008. AB DnB NORD Bankas, a leader of Lithuania‘s structured investment product market, issues new guaranteed-yield debt securities under the name of “Profit certificate“. They are guaranteed-yield notes since their holders clearly know in advance their gain at the maturity, reported the press-centre of DnB NORD Bankas.

This time „Profit certificate“ notes return is linked to changes of the USA, Japan, China and Europe equity prices. Global index portfolio of DnB NORD Bankas notes consists of China Hang Seng, US S&P 500, Europe‘s Dow Jones EURO STOXX 50 and Japan‘s Nikkei 225 indices. 

“Depending upon market development, at the maturity DnB NORD Bankas is to repay the total principal with 25 or 45 percent gain. Even given the market stagnation or recession, the holders of notes will benefit from small capital gain.“ – says DnB NORD Bankas Retail Banking Department Manager Ricardas Butkus.

The holders of “Profit certificate“ notes will be repaid a 45 percent gain by AB DnB NORD Bankas if the calculated Global index portfolio gain exceeds 25 percent in three years of notes validity.  If the equity market expansion is not as rapid, the gain is to stay 25 percent at the maturity. 

Since the equity markets may rise or fall, AB DnB NORD Bankas guarantees that the customer will be repaid the principal with three percent gain even if at the maturity the calculated index value falls below the initial. The gain of the same amount is also guaranteed in case the gain of (calculated) Global index portfolio is less than 3 percent in three years.

Customers will be offered to purchase the new “Profit certificate“ notes in all AB DnB NORD Bankas outlets until 19 June. The minimum investment amount has been set at LTL 3000.

The notes shall mature on 27 June of 2011. They can be sold prior to maturity at market price. The yield-guarantee applies to the notes at the maturity.

AB DnB NORD Bankas that won the country’s award by Central Securities Depository for its active performance in the debt securities market in 2007 at the end of Quarter 1 of this year covered 39 percent of the country‘s structural investment product market.