Kuala Lumpur: CIMB Bank today launched the “CIMB Twin Yield Income Investment" structured product, a conventional investment product which combines enhanced fixed income returns (of an annualised rate of 4.88%) with equity style dividend returns. 

This revolutionary product provides investors with the comfort of knowing that 100% of the principal is payable on call dates of the product. It is also backed with the added potential of capitalising on CIMB Group’s regional expertise with its presence in Southeast Asian countries plus China’s growth through commodities reference.

Speaking at the launch of the product, Dato’ Lee K. Kwan, Deputy CEO, Group Treasury and Investments, CIMB Group explained, “the product aims to pay a minimum cumulative average annualised fixed income return of 4.88% half-yearly for 10 years. In addition to that it also has the potential to earn additional uncapped variable returns annually - with an average dividend yield rate of 0.90%, adjusted for price movements of the variable underlyings. Investors also enjoy the assurance of daily secondary market liquidity, which is a feature of all CIMB Group’s structured investments.”

This product, as the name aptly suggests, yields two returns instead of one, from high cumulative fixed income returns referenced to CIMB Group’s AA3 rated Subordinated Note (rated by Rating Agency Malaysia) and variable equity based dividends from markets where CIMB Group is well-positioned in. Variable returns are based on an equally weighted basket of 5 reference indices – the MSCI Indonesia Index, Thailand SET 50 Index, MSCI Malaysia Free Index, MSCI Singapore Cash Index and the S&P GSCI Excess Return Index.

“With the current low and moderately rising interest rate environment, and high market volatility, products with consistently steady returns of a high minimum protected coupon and potential variable returns are extremely hard to come by. The CIMB Twin Yield Income Investment addresses the sentiment of clients who look for a combination of safety, good regular income and potential further upside,” Kwan added.

The minimum investment amount is RM250,000 and in further multiples of RM5,000 thereafter. The product is open for subscription up to a limited amount of RM300 million and for a limited offer period that ends on 26 March 2010.

CIMB Twin Yield Income Investment is available at all CIMB Bank branches nationwide.