Investment products referencing clean energy companies, or so-called eco-tech stocks, are being pitched as the next generation commodity notes for high-net-worth investors. Firms including JPMorgan and The Royal Bank of Scotland have started structuring capital-protected notes linked to the equity of alternative energy companies. The coupon payouts are both derivatives on the corporates' stock and rising commodity prices, which affect these alternative energy providers.
RBS is pitching a three-year 100% capital-protected equity swap, dubbed Clean Energy. In the swap, the investor pays six-month Euribor and receives an annual coupon linked to the equity growth of seven clean-energy corporates, including Evergreen Solar and Praxair. JPMorgan is also looking at putting together a capital-protected basket of hydro-electric and solar power-linked stocks, according to a structuring official at the firm.
Structured equity sales officials at rival firms said, like the spate of agriculture-linked products launched in the last few months (DW, 1/27), this is likely to have only niche-market appeal. An RBS official countered, however, that the firm has seen good levels of interest in Clean Energy.
