Bank Of Scotland Announces New Capital-Guaranteed Dollar Bond

by Carla Johnson, Investors Offshore.com

18 October 2006

Bank of Scotland has announced a new US Dollar Capital Guaranteed Savings Bond 19 which offers a 9% fixed rate on half clients' investments after just one year; the other half of an investment will earn participation in the performance of a multi ‘basket’ of indices over 5 years to offer the possibility of generating real and potentially unlimited capital growth.

Tony Wilcox, Managing Director, Bank of Scotland International comments, “We have found that this 50:50 formula has proved to be very successful with US dollar investors. Essentially we are offering clients two investments in one, with half their investment receiving a very competitive 9% fixed return after just one year. The other half of their investment will benefit from potential rises across a basket of stock market indices covering many of the world’s major equity markets. The initial capital is guaranteed and investors will always get more than their capital back.”

With this US Dollar Bond, 50% of the customer’s capital is invested for one year at a fixed return of 9%, maturing on 21 December 2007. The other 50% is invested for five years, tracking the FTSE 100 index, Swiss Market Index, Dow Jones Euro STOXX 50 and the Nikkei 225. Investors will benefit from 60% of the average rate of increase of the four indices over the five year period, or, if markets have not risen, they will earn a 10% return on this half. This matures on 21 December 2011.

The closing date for applications is 14 December 2006 with a minimum opening balance of $20,000.

Tony Wilcox adds, “To encourage earlier participation, we have set an early investor bonus on our US Dollar Capital Guaranteed Savings Bond 19. Customers investing prior to 18 November 2006 will receive a return on their capital equivalent to Base Rate. If an investment is made on 18 November 2006 or after, the rate will be lowered to 0.20% below base rate, until the start of the Bond.”

Bank of Scotland International offers a comprehensive range of banking and savings solutions worldwide from its offices in Jersey and Isle of Man. Bank of Scotland International provides financial support to expatriates, international clients and the UK, Isle of Man and Channel Island communities. As part of the HBOS group, Bank of Scotland International enjoys a Standard & Poor’s long-term AA credit rating and Moody’s Aa2 long-term credit rating.

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