Investment Services
Market Linked Deposits (MLDs) are time deposits denominated either in Rubles or in foreign currency with a fixed maturity, but variable return. Market Linked Deposits are suitable to clients who are willing to link their short/medium term deposits to certain conditions, thereby creating an opportunity to achieve a significantly higher return. This potentially higher return is not guaranteed, but depends on performance of a chosen underlying market variable factor. The market variable could be commodity price, exchange rate, and interest rate or stock market index. For example, it could be Brent Blend price, gold price, S&P stock market index or any foreign exchange rate (e.g. EUR/USD). The deposit is principal guaranteed and offers a minimum guaranteed rate of interest. The final return at maturity on your Market Linked Deposit depends on the outcome of the underlying market variable performance and the final pay-off to you will be the sum of following 3 components:
We will advise you of various MLDs on an ongoing basis. MLDs are distributed like an IPO, i.e. an announcement of a specific MLD launch will be made. Once subscription is opened the MLD will be sold to subscribers upon collection of required minimum amount. The minimum amount for investment in the MLD will be communicated at launch of the MLD. The tenors of MLDs are usually between 3 to 12 months, but sometimes longer tenor MLDs are also available. It is important that you realize that there are certain differences between a time deposit and an MLD. For example: In case the MLD is broken or reduced the investor looses the opportunity to gain from the performance of the underlying instrument and receives back only the principal amount and the agreed minimum interest rate. Past performance is not a guarantee of future performance. Although the information contained herein is believed to be reliable, ZAO Citibank makes no representation as to the accuracy or completeness of any information contained herein or provided by ZAO Citibank. Citibank is not acting as your advisor. Prior to entering into any proposed transaction, you should determine without reliance upon ZAO Citibank, the risks and consequences of the transaction with respect to instruments underlying a proposed transaction. This document and its contents are proprietary information and products of ZAO Citibank and may not be reproduced in whole or in part without ZAO Citibank's written consent. |
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