May 22, 2009 at 16:40 GMT
FAML Eurobond Guaranteed Investment Note has projected 51.78 percent (51.78%) returns to investors who take part in the alternative investment opportunity.
This was contained in a mail dated May 18 2009 and sent to Proshare NI by FSDH Asset Management Limited (FSDH).
The mail reads thus: “In the face of the current market conditions, FSDH Asset Management Limited is pleased to provide you with an alternative investment opportunity.
We hereby invite you to invest in the FAML Eurobond Guaranteed Investment Note. This is a U.S. $ denominated closed end fund with an effective yield to maturity of 18% per annum over a period of three (3) years.
The objective of the fund is to enable investors achieve stable and consistent income flows” the mail states.
From the Information Memorandum made available to Proshare NI, the Fund is being issued by FSDH Asset Management; a wholly owned subsidiary of First Securities Discount House Limited (FSDH).
The Information Memorandum affirms that the underlying assets of the Fund are Notes issued by the GTB Finance B.V incorporated with limited liability in the Netherlands and unconditionally and irrevocably guaranteed by Guaranty Trust Bank Plc (GTB) in Lagos Nigeria.
FSDH affirmed in the Information Memorandum that investors who are interested in the closed end fund are allowed to make an initial minimum subscription of $50,000 (N7.350 million) with multiplies of $10,000 (N470, 000) as per current official Exchange Rate.
“The structure period will be in place for a period of three (3) years ending February 03 2012. On minimum investment amount, the Note will pay a semi-annual coupon of $2, 567.95 which is a semi-annual effective rate of 5.14%” FSDH affirmed.
Proshare NI from the Information Memorandum gathered that throughout the life of the Note, interest payment will be paid six (6) times totalling $15,419.68. “At the end of the structure period, Noteholders will be paid the redemption value of $60,469.35” the Memorandum states.
Maturity date for the closed end fund is February 03 2012, “however, should a Noteholder wish to exit, before maturity date, FAML will, on a best effort basis, attempt to find a buyer to purchase at a price determined by Market forces and agreed by the seller” it said.