OREANDA-NEWS. October 05, 2009. These investment deposits are term deposits of AS SEB Pank (SEB) whose interest rate is dependent on growth in the prices of raw materials. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Pank.

The return on the Raw Materials Basket is tied to the price movements of the basket, which comprises the 10 equally weighted raw materials.

Calculation of return
The return on the underlying asset is calculated on the basis of the performance of the shares in the basket. All of the raw materials in the basket have an equal weighting (1/10th) and the return on the four best performing shares is fixed at 30%, regardless of whether their actual performance is lower or higher than the fixed level. With the remaining six raw materials, their actual performance is taken into account.

Negative scenario: if the return on all of the raw materials is -30%, the return on the underlying asset is calculated as follows:
(4 * 30% + 6 * (-30%)) / 10 = -6%

Neutral scenario: if the return on all of the shares is 10%, the return on the underlying asset is calculated as follows:
(4 * 30% + 6 * 10%) / 10 = 18%

Positive scenario: if the return on all of the shares is 50%, the return on the underlying asset is calculated as follows:
(4 * 30% + 6 * 50%) / 10 = 42%

If the return on the underlying asset is negative, no interest is earned on the Raw Materials Basket.

Why you should invest in the Raw Materials Basket
Capital-protected investment in raw materials

Increase in demand for raw materials, since restoration of global economic growth is forecast for 2010

Need for raw materials in emerging markets (including China) for the development of infrastructure

Potential rise in raw material prices, since insufficient financing of the raw materials industry during the recession means rapidly growing demand will not be able to be met

What you should also take into account
You may lose the risk premium you pay on deposits with a risk premium

The global economy may not recover as forecast

The deposit comes with a 100% guarantee
Provided you keep your money in the deposit until the end of the deposit period, SEB will pay at least the principal amount of your deposit back to you. Please read the terms and conditions of the deposit guarantee arising from the Guarantee Fund Act on the bank's website at www.seb.ee/investorkaitse in connection with the possible realisation of credit risk.

Investment deposits can be opened in Estonian kroons, euros and US dollars. In opening or closing deposits, Estonian kroons and euros are converted according to the official EUR/EEK exchange rate of the Bank of Estonia. The contractual and offer terms of investment deposits are available on the SEB website at www.seb.ee and from all SEB branches. You can also make an appointment for additional financial consultation at any branch. Investment deposit contracts can be signed via SEBa€™s U-Net Internet bank and at SEB branches.

This offer is valid until 02.11.2009.