‘As a result of the economic recovery being felt elsewhere in the world, development of the economy in Finland has been visibly stimulated. A rise in exports, low interest rates, efficient financial management of the country and businesses, and high and stable borrowing rating are reflected in the results of both the macroeconomic indicators of Finland and business profits. The situation is favourable for future investment’, says Modestas Plakys, the manager of Investment Product Projects at Nordea Bank Lietuva.
The share basket of the issued bond Finland includes shares of companies such as Cargotec, Kesko, Metso, Nokia, Nokian Renkaat, Outokumpu, Rautaruukki, Sampo, TeliaSonera, and Tieto.
‘The recovering Finnish economy should be of interest to investors at this time. Last year, GDP in Finland dropped by 8% and this year growth of 3.5% is predicted. Similar trends will be seen for the next two years. Investors are very positive about the rather large dividends of Finnish companies, therefore good profitability in 2010 will encourage investors to avail of such an investment opportunity,’ says Mr. Plakys.
The following two options of the index-linked bond Finland are available: Finland Basic and Finland Extra. Basic is suitable for the more cautious investor – the profitability of these bonds will be 70% of the increase in value of the share basket according to the terms of the issue, but in any event the investor receives at least the total nominal sum invested. Extra is suitable for the investor ready to take a greater risk – the profitability of these bonds will be 160% of the increase in the value of the share portfolio according to the issue terms, but if the share value of the ten Finnish companies goes down, the buyers of the Extra bonds can lose approximately 10% of the investment (the portion of the risk surcharge paid).
Bonds will be available until 4 November. The minimum investment sum is 1000 Euro and available in Euro only. The redemption price will be announced on 29 October 2015. The Nordea indexed-linked bonds are available in all customer service units of Nordea Bank Lietuva. No purchase or custody fees are applied. The bonds can be sold on the secondary market prior to the 5-year maturity term.
