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ADIB announces third oil note

Sharia-compliant note open for subscription until September 9

Gulf News

Abu Dhabi: Abu Dhabi Islamic Bank (ADIB) yesterday announced the launch of the third version of its two-year, 100 per cent capital-protected oil note, saying it was on the back of the successful placement and excellent return that accrued from its first oil note.

The Sharia-compliant ADIB Oil Note III is open for subscription from end of July until September 9 this year.

“ADIB Oil Note III provides investors with an opportunity to invest in this commodity on a secured basis. As a benchmark, its predecessor, ADIB Oil Note I, earned investors almost 18 per cent over a two-year period, which is significantly higher than other risk-free products currently in the market,” ADIB said in a statement.

“This is a structured product from ADIB for retail customers. In terms of convenience, it’s a good product. Compared to a bank fixed deposit, this product may give customers higher returns on their capital should global oil prices rise significantly,” a Dubai-based stock trader told Gulf News, commenting on ADIB’s announcement.

On Wednesday, ADIB said its net profit for the fiscal second quarter rose 2.3 per cent to Dh322.6 million, even as net revenue for the period declined 2.4 per cent from the corresponding period a year ago to Dh888.6 million.