OREANDA-NEWS. April 19, 2010. These investment deposits are term deposits of AS SEB Pank (SEB), whose guaranteed interest will be 0.30% on a yearly basis and whose additional interest is related to the increase in the commodities prices. The principal amount of the deposit is 100% protected by the end of the deposit period, reported the press-centre of SEB Pank.

In calculating the final value of the basket of the underlying asset, the rate of return of the two best performing shares has been fixed at +30%.

The rate of return of the Commodities investment deposit is related to the price movements of a portfolio comprising 6 commodities. The portfolio contains in equal weightings (1/6) the following commodity futures and commodities: corn, wheat, soybeans, silver, platinum and palladium. The return of the commodities will be found comparing the initial value with the final value, whereas the return on the two best performing commodities is fixed at 30%, regardless of whether their actual performance is lower or higher than the fixed level. For the remaining four commodities, the actual return will be taken into account. Examples:

Negative scenario: if the return on all of the commodities is -30%, the yield on the underlying asset is calculated as follows:
(2 * 30% + 4 * (-30%)) / 6 = -10%

Neutral scenario: if the return on all of the commodities is 10%, the yield on the underlying asset is calculated as follows:
(2 * 30% + 4 * 10%) / 6 = 16,67%

Positive scenario: if the return on all of the commodities is 50%, the yield on the underlying asset is calculated as follows:
(2 * 30% + 4 * 50%) / 6 = 43,33%

If the yield of the underlying assets is negative, then the interest of the investment deposits "Commodities" is 0.30% on a yearly basis and no additional interest is earned.

Why invest in the Commodities investment deposit?
Capital-protected investment in raw materials
Growth of world population and increasing standard of living raise the consumption of commodities
Increased production of biofuels has raised the prices of agricultural commodities
Limited resources have made the extending of production ever harder and necessary investments raise the prices of the commodities.

You should also keep in mind that
The additional interest of the investment deposits is not guaranteed
You may lose the risk premium you pay on deposits with a risk premium
The prices of commodities are influenced by many, incl. unforeseeable circumstances, whereby the prices may not increase

The deposit comes with a 100% guarantee
If you keep your money in the deposit until the end of the deposit period, SEB will pay at least the principal amount of your deposit back to you. Please read the terms and conditions of the deposit guarantee set forth in the Guarantee Fund Act on the bank's website at www.seb.ee/investorkaitse in connection with the possible realisation of credit risk.

Investment deposits can be opened in euros and US dollars. Estonian kroons and euros are converted when the deposit is opened and closed using the EUR/EEK exchange rate established by Eesti Pank.

The contractual and offer terms of investment deposits are available on the SEB website at www.seb.ee as well as at all SEB branches. You can also make an appointment for an additional financial consultation at any branch. Investment deposit contracts can be signed at SEB Internet bank and at SEB branches.

WARNING: This material alone is not sufficient for making final investment decisions! Before making a final investment decision, please read the terms and conditions of the investment deposit contract, the terms and conditions of the offer and the information on the SEB website at www.seb.ee/investorkaitse, particularly the important information about the potential risks associated with the product, very carefully and consult an expert if necessary.