Middlesea Valletta Life Assurance Co. Ltd (MSV) has launched a new tranche of the MSV Capital Guaranteed Bond (CGB) that matures in 2016.

The CGB is a 10-year unit-linked life policy aimed at cautious investors, guaranteeing the return of the capital invested intact (if held to maturity) - a feature much in demand by local investors. Applications open tomorrow and close on June 12 or earlier if the amount is fully subscribed. The minimum subscription is only €5,000 (equivalent to circa Lm2,200) and is therefore accessible by many small investors to whom this investment is targeted.

Throughout its duration the CGB provides two types of coupons that are paid annually. In the first three years the coupon is guaranteed for a total of 13.5 per cent (4.5 per cent payable annually). In the remaining seven years, the coupon is variable and is linked to the performance of a basket of 20 shares.

The variable coupon will provide a participation of any rise in the value of the equity basket, subject to a maximum of nine per cent p.a. Even if the equity basket registers a negative performance in any particular year, the capital remains protected and guaranteed.

MSV have developed the CGB jointly with Société Générale (a leading French banking group) that has long been considered as one of the leading institutions in providing capital protected structured products.

For more information, contact MSV head office on freephone 8007-2220 or e-mail: info@msvlife.com.