A UK Five option takes out any credit exposure to Investec Bank, replacing it with a spread of five UK-based banks – HSBC, Nationwide Building Society, Santander UK, The Royal Bank of Scotland and Lloyds TSB.
The Investec option leaves Investec Bank as the single counterparty.
The product also gives investors the choice of payment options with the potential of an early maturity at the end of any of the first five years with a payment of 11% (Investec option) or 9% (UK Five option).
If the plan runs through to maturity on 27 February 2018, investors will get a maximum payment of 66% (Investec option) or 54% (UK Five option). Should the FTSE 100 finish below 50% of its start level, as fixed at the close of business on 27 February, the investor will lose all or part of their initial investment.
Gary Dale, head of intermediary sales at Investec Structured Products confirmed this may be the first launch of 2012 but the firm will “continue to develop new pay-offs as the opportunities arise.”
