National Bonds, wholly owned by the Investment Corporation of Dubai, has launched a new capital-protected investment scheme.

“EIBOR Plus” delivers a secure and adaptable investment option, with its pricing model automatically adjusting quarterly to reflect the central bank’s Emirates Interbank Offered Rate (EIBOR), the company said in a statement.

The expected return on the scheme will be 0.5% above the EIBOR on an annual basis. 

According to the company’s website, an investor will earn 5.8% per annum (pa) if the 3-month EIBOR rate is 5.3% pa. The profit payout will be quarterly in line with EIBOR rates.

“As the market rate changes, quarterly earnings will continue to grow at a faster pace than others,” National Bonds stated.

The minimum investment is 25,000 UAE dirhams ($6807.54), with the terms spanning from six to 36 months.

“As the UAE’s economy flourishes, we will continue to develop innovative programs and creative solutions to cater to the diverse financial needs of the UAE’s population,” said Rehab Lootah, Deputy Group CEO of National Bonds.

(Editing by Seban Scaria seban.scaria@lseg.com)