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Ulster Bank Launches The Green Global Bond

23rd May 2008

Ulster Bank has launched the Green Global Bond, a new investment product which tracks the RBS Green Index, an Index of some of the most prominent companies active within the green business sector, including hydroelectricity, solar and wind energy and waste management. The bond offers customers 100% Capital Security at maturity and is available over a 5 year 6 month term.

The Ulster Bank Green Global Bond offers:

  • Exposure to the RBS Green Index which tracks the performance of an equally weighted portfolio of 30 companies from across the globe who operate within the emerging Green Business Sectors
  • Daily Dynamic Risk Management controls exposure in volatile markets
  • 100% Capital Security at Maturity
  • 5 year 6 month term
  • 95% of any return generated on the 5 Year 6 month term of the bond is paid to investors at maturity

The RBS Green Index has an automatic feature that aims to protect against any market volatility that may occur within the sector. The Index will be fully exposed to the listed companies during periods of low volatility but will proportionally reduce exposure should the Index volatility increase. In periods of higher market volatility this feature will soften the effect of market falls and constrain the benefit of market rises.

Commenting at the launch of the Bond, Mr Patrick Farrell, Head of Product Management at Ulster Bank said: With growing media coverage of the damaging effects of climate change, it's no longer possible for us as individuals or businesses to ignore our impact on the environment. Some of the most exciting developments and innovative technologies emerging now are linked to ways we can become more energy efficient and protective of the planet. The Green Global Bond aims to capture the growth in this new sector.

The top 10 Companies currently in the Index include; Veolia Environnement, Archer Daniels Midlands, Vestas Wind Systems, MEMC Electronic Materials, Waste Management Inc., Bunge, CEMIG SA (ADR), Johnson Matthey, First Solar and Acciona. In order to be eligible for listing in the Index, companies within the RBS Green Index must derive a significant proportion of their revenue from their green activities. In May of each calendar year all companies are reviewed as to their fulfilment of the Index criteria.

The minimum investment for the Green Global Bond is €10,000 and the closing date for applications is 27th June 2008 or earlier if fully subscribed. The Ulster Bank Green Global Bond is available through Ulster Bank's 131 branches in the Republic of Ireland.