New Index-Linked Bonds „China Rising”

Nordea announces subscription to index linked bonds „China Rising” with the subscription period ending 11 March this year. The share basket of the bonds allows for investments in 12 international companies profiting from the growing economy of China. The rapid growth of the market in the region guarantees high potential yield possibilities.

The share basket includes both the leading companies of China, such as China Mobile, Bank of China, China Life Insurance, and also World production giants as Nokia, Ericsson, Toyota, Samsung etc. profiting from the growing consumption in the centre of Asia. Nordea financial experts anticipate China’s economic growth of 10% in 2010. Accordingly, the subscription offer by Nordea to the new index-linked bond „China Rising” provides possibilities of high potential profit in the most active economic region of the world. 

„China Rising” provides for beneficial terms, because in yield calculation the performances of the four best shares are replaced with 60% irrespective of the performance of the shares – whether it has been the highest growth or the smallest fall. The bonds may guarantee the annual yield of 2.8% if the total value of the remaining shares remains constant.

Investments in index-linked bonds are an attractive alternative to classical long-term deposits. The main advantages are high potential yield possibilities, guaranteed return of the nominal capital of the bond to the customer at maturity irrespective the market growth and the possibility to track the value of the bonds on the webpage of the bank and sell the bonds prematurely at a convenient period of time thereby fixing the desirable profit.

Nordea operations in the sphere of investments are based upon 20 years of experience in the Nordic countries in creation of structured products and analysis of financial markets. First investments granting the customer return of the nominal capital of the bond and the possibility to participate in growth of financial markets were initially offered to a small range of customers in the Nordic countries already in the beginning of 1990.  Having expanded proficiency in international finance and entrusting creation of structured products to experienced Nordic investment managers in 2000 the structured bonds of Nordea were made available to all investors.