DnB NORD Bankas Starts Placement of Issue of Guaranteed-Yield Notes
OREANDA-NEWS. On September 22, 2008 The leader of Lithuania’s structured investment product market, started placement of its three year corporate notes issued under guaranteed-yield investment programme Profit Certificate. This time the return of the debt securities is linked to the performance of global equity markets with the bank extending a minimum 15 percent yield-guarantee at the maturity, reported the press-centre of AB DnB NORD Bankas.
This time the index portfolio the DnB NORD Bankas notes’ return is linked to consists of China Hang Seng, US S&P 500, Europe‘s Dow Jones EURO STOXX 50 and Japan‘s Nikkei 225 indices 25 percent each. The bank has set 80 percent participation rate for the newly issued litas denominated notes. The rate defines what percentage of the calculated equity index gain is to be received by the holder of the securities at the maturity.
Since the equity markets may rise or fall, AB DnB NORD Bankas also extends guarantee that at the maturity the notes’ holder will be repaid the principle with no less than 15 percent gain shall the indices comprising the portfolio fall below the initial.
Customers will be offered to purchase the new notes in all AB DnB NORD Bankas outlets until 30 October (inclusive). The minimum investment amount has been set at LTL 3000.
The notes shall mature on 7 November, 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 enjoys Long-term Issuer Default rating at “A” with stable outlook affirmed by the international rating agency Fitch on July 24, 2008. This high ranking of AB DnB NORD Bankas creditworthiness matches the sovereign rating of the Republic of Lithuania.
AB DnB NORD Bankas is a universal commercial bank that provides full range of banking services to individual and corporate customers. AB DnB NORD Bankas runs three subsidiaries: asset management firm UAB DnB NORD Investiciju Valdymas, leasing arm UAB DnB NORD Lizingas and real estate brokerage UAB DnB NORD Bustas.
The bank is part of Denmark-based DnB NORD banking group which was established by the Norway’s largest bank DnB NOR ASA and North Germany’s largest bank Norddeutsche Landesbank Girozentrale (NORD/LB) to serve customers in Denmark, Finland, Estonia, Latvia, Lithuania and Poland.
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