The recent volatility in the equity markets and downhill trend in interest rates has prompted Bank of Valletta International (BOVI) to offer an alternative solution to meet its private customerís needs. BOVI is the private banking arm of the BOV Group and this new product is being offered exclusively to the Bankís international clients.

BOVIís new product, the Equity Linked Euro Deposit, offers international customers a unique opportunity to enhance the potential performance of their portfolio without putting their capital at risk. The innovative feature of this new product is that depositors can benefit from the potential growth of a number of European blue chip companies that make up the Dow Jones EUROSTOXX 50 Index.

Speaking about this new product, Tonio Paris, General Manager, Bank of Valletta International, stated that, "This five-year deposit is linked to Dow Jones EUROSTOXX 50 Index which consists of sector leaders in ëEurolandí countries and incorporates blue chip companies from different sectors including Pharmaceuticals, Food & Beverages, Telecoms and Technology, Banking, Insurance and Oil. Companies represented in the Index include Volkswagen, Axa, Alcatel, ABN Amro, Unicredito, TotalFinaElf, Telecom Italia and Bayer."

Mr Paris added, "The Equity Linked Deposit allows clients to participate in potential stock market growth. Their investment grows in line with the performance of the Eurostoxx 50 Index. At the end of the five-year period they will be able to take home 80 per cent of the rise in Index. This feature will potentially provide a higher return than conventional deposits and at the same time providing 100% capital protection. There is no limit on the rise in the index."

Through this innovative and versatile product, clients will also be mitigating the risks associated with fluctuations in the index. These fluctuations are evened-out by averaging the Index performance over the last twelve quarters of the deposit period. This eliminates the risk that the Index may go down on maturity date of the deposit adversely effecting clientsí returns. Moreover, whatever happens to the DJ Eurostoxx 50, on maturity BOVI guarantees the return of the original deposit at the end of the five-year period."

Deposits are being accepted from international customers in multiples of EURO 1,000 for a limited period between 16 April 2001 till 7 May 2001. The Bank, however, reserves the right to close the offer before the closing date. Further details can be obtained from Bank of Valletta International on telephone (356) 243263-6 or e-mail [email protected].