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3 Year Capital Protected DFM Note
Summary Terms:
- Product:3 year US Dollar Note linked to basket of stocks on the Dubai Financial Market with maximum potential of 12% annual profit paid to the Note holder.
- Minimum Investment Amount: USD 10,000 minimum with multiples of USD 1,000 thereafter.
- Nominal Amount: USD 1,000 per Note.
- Investment Period: 3 years
- Reference Index/Market: Dubai Financial Market
- Capital Protection: 100% capital protection from Deutsche Bank AG, London branch if Notes are held until maturity (3Years), achieved through a Sharia compliant Mechanism.
- Valuation: Weekly
- Redemptions: On a monthly basis
- Redemption fee:AED 250/=
- Redemption On Maturity: National Amount X 100%
- Business Day: Working day in London, UK, and New York, US and Dubai, U.A.E
- Annual Management Fee: Nil
- Upfront fee: 1% of the subscription amount
- Issuer:Deutsche Bank AG, London branch
- Sole Distributor: Dubai Islamic Bank (DIB)
- Administrator: Ryland Gray
- Sharia Advisor: Fatwa & Sharia Supervisory board of Dar Al Istithmar , London.
Reference Basket:
- Amlak Finance : Provider of Shari’a compliant mortgages, loans.
- ARABTEC :Construction and real estate management.
- Dubai Investment : Holding company, manufacturing, trading and services.
- Emaar Properties : Largest real estate developer in the Gulf region.
- Aramex : Largest transportation services provide, investing in freight and logistics.
- TABREED : Air-conditioning systems for residential and industrial properties.
- Dubai Islamic Bank : DIB is a top provider of banking and investment services in accordance with the Islamic law.
- Tamweel : One of the largest Sharia compliant mortgage finance providers
Example :
Payout Formula:
1.The performance of each of the stocks in the basket up to 12% is considered and the basket’s average performance is calculated.
2.If the performance is positive, a coupon equivalent to the basket performance will be paid to the Note holder.
3.If the performance is negative, no coupon is paid to the Note holder.
4.The same coupon calculation procedure is done at the Note’s second and third anniversaries.
5.The performance of each stock applicable for a calculation of the basket’s performance is capped. The maximum coupon paid out at each anniversary shall be 12%.
6.The relevant performance of each stock for second and third anniversaries shall be calculated from the initial observation date at the outset of the Note.
Eight stocks weight and overview in DFM:
| S.No | Company | Percentage of investment | Weight in DFM | 52 Weeks Low | Current value on 29/10/2006 | 52 Weeks High |
|---|---|---|---|---|---|---|
| 1 | AMLAK Finance | 7.16% | 4.15% | 14.45 | 5.71 | 7.18 |
| 2 | ARABTEC | 1.83% | 1.06% | 6.22 | 3.16 | 5.45 |
| 3 | Dubai Investment | 6.93% | 4.02% | 10.75 | 4.18 | 5.33 |
| 4 | EMAAR Properties | 33.34% | 33.34% | 27.45 | 10.65 | 14.30 |
| 5 | TABREED | 2.12% | 1.23% | 6.93 | 2.67 | 3.08 |
| 6 | Arab In'l Logistics(ARAMEX) | 2.26% | 1.31% | 6.99 | 2.95 | 3.43 |
| 7 | Dubai Islamic Bank | 19.40% | 11.25% | 18.15 | 9.34 | 10.30 |
| 8 | Tamweel | 2.83% | 1.64% | 5.02 | 2.71 | 5.05 |