OCBC aims for agri-property outperformance
OCBC Bank in Malaysia has launched the Agri-Property Outperformance floating-rate instrument of deposit, a 100% principal protected product that measures the out-performance of six international agribusiness stocks against the iShares Dow Jones US Real Estate Index Fund. The six stocks comprise Archer-Daniels-Midland, Bunge, Monsanto, Agrium, and Deere and Nestle.
The product, denominated in Malaysian ringgits, aims to provide a quarterly interest payment which is only made if the outperformance event is triggered, meaning each of the underlying shares on a given valuation date outperforming the bearish index. If the shares outperform the index, the interest rate for the period will be 8% a year multiplied by an indicative participation rate between 90%-110%.
An auto-redemption event is triggered if the underlying shares outperform the index by 8% or more
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