Cimb Bank Offers Australian Dollar 5 Pct Guaranteed Returns

KUALA LUMPUR, Feb 18 (Bernama) -- CIMB Bank Bhd, through its recently launched Australian Dollar (AUD) denominated Floating Rate Negotiable Instrument of Deposit (FRNID), aims to capitalise on the demand for AUD products and allow Malaysian investors to take advantage of Australian interest rates. "This investment guarantees the AUD principal at maturity and pays attractive returns in the form of guaranteed coupons and potential variable coupons that are linked to three Australian blue chip companies," CIMB said in a statement Saturday. It said the companies -- BHP Billiton Ltd, Rio Tinto Ltd and Woolworths Ltd -- are selected for their good track records with positive stock price correlations to each other. Lee Kok Kwan, Group Deputy Chief Executive Officer & Head of Corporate Banking, Treasury and Markets, said the investment addresses the needs of most retail investors for principal protection and high regular income amidst volatile global markets. "Hence, we bring them a simple, yet transparent investment with regular income streams and potential enhanced variable returns," he said. He said the investment is designed for investors who have AUD exposure and at the same time want to earn high regular income streams via the Australian equity exposure. The investment provides fixed guaranteed coupons of 5.00 per cent per annum payable annually in AUD, over a period of seven years, CIMB said. Minimum investment amount is AUD30,000 and in further multiples of A$5,000, and is opened for a limited offer period and available at all CIMB Bank branches nationwide. -- BERNAMA