UAE-based savings and investment company National Bonds launched the ‘EIBOR Plus’ investment solution on Wednesday, marking a leap forward in capital-protected offerings.
The product tracks the Emirates Interbank Offered Rate (EIBOR), providing investors with an expected return of 0.5 percentage points above the benchmark’s performance on an annual basis.
EIBOR Plus delivers a secure and adaptable investment option, with its pricing model automatically adjusting quarterly to reflect the Central Bank’s EIBOR, National Bonds said.
Minimum investment
A minimum investment of AED25,000 grants investors entry into the program, with the flexibility to choose their preferred EIBOR-linked term Sukuk ranging from 6 to 36 months.
“National Bonds’ mission is to empower individuals and provide the safest, yet most rewarding savings and investment solutions in the UAE,” said Rehab Lootah, Deputy Group CEO of National Bonds.
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“The launch of EIBOR Plus exemplifies this commitment. As the UAE’s economy flourishes, we will continue to develop innovative programs and creative solutions to cater seamlessly to the diverse financial needs and aspirations of the UAE’s population,” she added.
How does EIBOR Plus work?
EIBOR Plus allows the investor to earn 0.5 percentage points per annum more than the 3-month EIBOR as expected profit. If today’s 3-month EIBOR rate is 5.3 percent p.a., then the National Bonds investment will earn 5.8 percent p.a.
What is EIBOR?
EIBOR is the benchmark interest rate for lending between banks within the UAE, stated in UAE dirhams. The EIBOR is also the reference rate used by borrowers and lenders to conduct financial transactions in the UAE for loans such as mortgages, personal and car loans.
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