The first product, Market Linked Structured Investment-i (iSI), is a Shariah-compliant capital protected investment product that will allow Citibank's clients to enjoy investment returns at rates that are referenced to a wide variety of assets or benchmarks. Through the iSI, Citibank will provide investors a regular stream of Shariah-compliant investment ideas.
The iSI is the first product of its kind where returns can be structured to a specific investor's preference on a completely bespoke basis.
"For the first time, the Shariah investor community has access to products which are consistent with their increasingly sophisticated world view. The days where the only choice was whether to buy a five-year or ten-year fixed rate instrument are now behind us," says Rafe Haneef, head of Islamic banking, Citigroup Asia.
The second product, the Islamic Hedging Undertaking-i (iHU) is a Shariah-compliant hedging tool to help CitibankÆs clients meet a range of hedging requirements. The bank says the product's flexibility and documentation simplicity will give clients the hedging tools that will allow them to manage a wide range of risks with ease.
But the iSI and the iHU are offered in Malaysian ringgit and selected foreign currencies.
Sanjeev Nanavati, head of corporate and investment banking for Citigroup, explains: "The introduction of iSI and iHU represents a significant move to make Islamic finance accessible by making it simple to transact. These products prove that Islamic finance is competitive to conventional finance as it provides clients with choices (either on what to hedge or what to invest in), which was not available before."
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