Bank Of Valletta International Launches Equity Linked Euro Deposits

by Lorys Charambolous, Tax-news.com, Cyprus

30 April 2001

Amid the recent volatility of the equity markets and the downhill spirallling of interest rates, the Bank of Valletta International (BOVI) has decided to offer an alternative solution to meet its private customer's needs by offering a new product exclusively to the Bank's international clients.

BOVI says its new Equity Linked Euro Deposit offers international clients a unique opportunity to enhance the potential performance of their portfolio that does not put their capital at risk. It contains an innovative feature which allows depositors to benefit from the potential growth of a number of European blue chip companies.

In a statement released by BOVI, the private banking arm of the BOV group, general manager Tonio Paris declared: 'This five-year deposit is linked to Dow Jones EUROSTOXX 50 Index which consists of sector leaders in "Euroland" countries and incorporates blue chip companies from different sectors including Pharmaceuticals, Food & Beverages, Telecoms and Technology, Banking, Insurance and Oil. Companies represented in the Index include Volkswagen, Axa, Alcatel, ABN Amro, Unicredito, TotalFinaElf, Telecom Italia and Bayer.'

He added: 'The Equity Linked Deposit allows clients to participate in potential stock market growth. Their investment grows in line with the performance of the Eurostoxx 50 Index. At the end of the five-year period they will be able to take home 80% of the rise in Index. This feature will potentially provide a higher return than conventional deposits and at the same time providing 100% capital protection. There is no limit on the rise in the index.'

Deposits are being accepted from international customers in multiples of EURO 1,000 for a limited period between the 16th April 2001 until the 7th May 2001, although the bank does reserve the right to close the offer before the closing date.

Mr Paris concluded: 'Through this innovative and versatile product, clients will also be mitigating the risks associated with fluctuations in the index. These fluctuations are evened-out by averaging the Index performance over the last twelve quarters of the deposit period. This eliminates the risk that the Index may go down on maturity date of the deposit adversely effecting clients' returns. Moreover, whatever happens to the DJ Eurostoxx 50, on maturity BOVI guarantees the return of the original deposit at the end of the five-year period.'

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