Britannia International, the Isle of Man-based offshore subsidiary of what is now known as the Co-operative Bank, has launched a second issue of its six-year Guaranteed Capital Bond, and an eighth issue of a similar product with a three-year term, in response to what it said was strong demand.
The six-year bond will pay a fixed return of 5% gross/AER for each year that the FTSE 100 index does not fall below 75% of the start value, to be taken at the close of business on 19 October.
The three-year Guaranteed Capital bond will pay a fixed return of 11% gross/3.54% AER if the FTSE 100 index is equal to or greater than the start value over the investment term, subject to averaging over the final six months.
Early investors in the three-year product can benefit from an investment bonus of 0.40% if they open their bond before 18 September.
The minimum investment for both products is £5,000, and both may also be withdrawn from sale early if fully subscribed, Britannia said.
Britannia International managing director Mark Beresford said investors are expected to appreciate the “peace of mind” of knowing that their capital is guaranteed to be returned at the end of the investment period, which is not an option with direct stock market investments.
The two Britannia Guaranteed Capital Bond products are sold through intermediaries, who receive a 2% commission on each six-year bond sold and 1% on each three-year version. Further information may be found at www.britanniainternational or by calling 01624 624 455.
Britannia International became part of the Co-op earlier this year, when that institution merged with its then-parent, the Britannia Building Society.
