The six-year fully capital protected certificate, issued in US$100 denominations, provides an indicative 92% exposure of the average performance of a basket of reference indexes comprising the ABN Amro Shipping index (30%), Bric Infrastructure Index (40%) and the Climate Change and Environment Index (30%). The indexes are calculated by S&P.
All proceeds received by the issuer from the issue and sale of the certificates to third parties is used to buy sharia-compliant equities selected from the Dow Jones Islamic Market World Index, and then on behalf of the certificate holders is placed in a third party custody account, operated by Citi. At maturity the equities portfolio is sold at a price, the final certificate value, determined on the basis of the performance of the underlying reference indexes.
The final certificate value is calculated by multiplying the initial certificate value (US$100) by the final synthetic underlying value over the initial synthetic underlying value (100%). The final synthetic underlying value is calculated by multiplying the initial synthetic underlying value by 92% of the percentage rise of the basket of indexes. The final reference price is averaged over 12 valuation dates. The product received sharia approval from Islamic scholars Mohammed Ali Elgari and Imran Usmani.