Laiki Bank, a Greek retail bank based in Athens, is marketing its first FTSE growth and income deposit account to customers in the U.K. In the structure, investors' deposits are split 50/50 between a high-interest account paying 10.5% for the first 18 months and 100% participation in the upside of the FTSE 100 over three years. The return of the FTSE-linked deposit is dependant on the average of quarterly closing levels throughout the term of the trade.
Hara Menelaou, head of marketing in London, said the deal is Laiki's first of this kind in the U.K., and has a target size of GBP20 million. The firm structured the account itself, but will likely hedge the FTSE participation by buying an index call option from an external counterparty. Menelaou said hedging is arranged by Laiki Bank's group treasury.
