CIMB: New product offers twin returns

CIMB Bank has launched a structured product that may allow high-net worth investors to earn a fixed annualised return of 4.88 per cent, plus an equity style dividend.

The "CIMB Twin Yield Income Investment" also gives investors the comfort of knowing that the principal is fully payable on call dates. Minimum investment starts at RM250,000. CIMB can take in up to RM300 million subscription before the offer period ends on March 26.

"With the current low and moderately rising interest rate environment, as well as high market volatility, investments with consistently steady returns of a high minimum protected coupon and potential variable returns are extremely hard to come by," CIMB Group's deputy chief executive officer for treasury and investment, Datuk Lee Kok Kwan said in Kuala Lumpur yesterday.

"The product addresses the sentiment of clients who look for a combination of safety, good regular income and potential further upside," he added.



The product yields two returns instead of one, from high cumulative fixed-income returns referenced to CIMB group's "AA3" rated sub-ordinated note and variable equity based dividends from markets where CIMB group is well positioned in.

Variable returns are based on an equally weighted basket of five reference indices - the MSCI Indonesia Index, Thailand SET 50 Index, MSCI Malaysia Free Index, MSCI Singapore Cash Index and the S&P GSCI Excess Return Index