Abu Dhabi Islamic Bank launches one-year healthcare equities note for investors

The Abu Dhabi Islamic Bank (ADIB) has launched a new healthcare-focused equities basket note for investors in 2021.

The structured note which matures in 12 months provides 95 per cent capital protection, while offering no cap on the potential return.

It is open for subscription until February 4, 2021, with a minimum investment commitment of $50,000.

In a statement issued on Tuesday, the bank said that customers have the option to redeem their investment after a three-month lock-in period.

The Sharia’a-compliant product provides investors with access to international healthcare companies across various disciplines including research and development, manufacturing, and those involved in selling of treatments, medicines, and vaccines.

The stocks include Merck & Co, Gilead Sciences, Johnson & Johnson, Sanofi and Novartis.

“Healthcare is one of the sectors that has seen strong investor interest during this pandemic induced era. The launch of this new Sharia’a-compliant healthcare equity basket note provides exposure to leading international healthcare companies primed to capitalise on such trends in a post-Covid-19 world. It is expected to offer strong returns with limited risk to their capital,” said Saif Alkeem, head of Wealth Management and Priority Banking at ADIB.

ADIB had previously reported a net profit of Dhs587.6m for H1 2020, down 52 per cent year-on-year.

Read: Abu Dhabi Islamic Bank records 52% decrease in net profit for H1 2020