Qatar National Bank (QNB) announces the launch of “QNB Note 2“. “QNB Note 2″ is a 100% Capital-Protected Note with investment returns linked to the performance of a basket of eight international (European and US) company stocks, which are listed on the equity markets of their respective countries of origin. It is a closed three-year investment, with a minimum capital investment of QAR 20,000.
“QNB Note 2″ is a medium-term investment product for investors seeking an enhanced return, with 100% capital protection and broad risk diversification. The timing of the product’s launch, as well as QNB’s selection of the underlying stocks, provide an attractive and innovative opportunity to gain exposure to Qatar’s high rate of economic growth in the next three years.
The eight international companies which form the investment basket have been selected on the basis of their existing close ties to Qatar, either due to their existing local presence or due to substantial business interests in the country. A further aim is to provide satisfactory geographical diversification.
This investment opportunity is available both to Qatari and non-Qatari investors, living in Qatar or overseas.
The eight international companies selected are Total (France-Energy), Vinci (France-Industrials), Siemens (Germany-Industrials), ArcelorMittal (Netherlands-Materials), Iberdrola (Spain-Utilities), Royal Dutch Shell PLC (UK-Energy), ConocoPhillips (US-Energy) and Halliburton Co. (US-Energy).
Returns are linked to the performance of eight equally-weighted international stocks where 50% from the total investment will be on Total and ConocoPhillips, with an average of 25% in each company and the second half is equally divided among the rest of the companies, with an average of 12.5% of the total investment. Performance will be measured on an annual basis and will be paid in the form of annual coupons, linked to the average performance of the basket of stocks. The annual performance of each individual stock is capped at 7%.
“QNB Note 2″ will be available to investors at all QNB branches in Qatar. The subscription period will commence on 4th February 2014 and investments will be accepted for a period of one month, ending on 5th March 2014.