The first tranche of QIB (UK)’s Shariah-compliant structured note programme- Hemaya, has matured, giving a “positive” return of 10.09% on investors’ invested capital.
Hemaya invests in the Qatari stock market, QIB said.
QIB (UK) was the first institution to launch a Shariah-compliant capital protected structured note in May 2010.
Since the first issuance, QIB (UK) has launched six Hemaya structured note tranches raising more than $150mn.
“The structure of Hemaya has demonstrated the strength and effectiveness of its design, which has provided investors with a good return whilst managing the risk proactively. The equities basket was replicated for the following two tranches, but for the last three tranches, the Saudi Stock Exchange and the Abu Dhabi Stock Exchange were incorporated to provide investors with a broader array of stock selection. Hemaya is a pioneer in the Islamic finance space, providing investors with a capital guaranteed alternative to direct exposure to equities,” QIB said.
Over the two year duration, the Hemaya I tranche has performed despite challenges seen in the global markets, QIB said.
“This is primarily due to the strength in the growth seen in Qatar due to their announcement of a large scale investment programme for Qatar’s plans for the FIFA World Cup 2022. Furthermore, the volatility cap has helped maintain the positive return allowing the basket to withstand the shocks in collapsing markets while maintaining the performance,” QIB said.
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