Guaranteed Investment


Structured investments are those that use contracts and options to protect the downside of a position. Jyske Bank is introducing a new structured product based on 5 different indices that provides this protection.

This is an investment where the only risk to any investor is in the value of Icelandic kroner versus an investor’s own currency. In the worst case scenario investors only get their initial investment back in Icelandic kroner and lose interest during the 3 years that the investment is in force.

However Jyske expects the Icelandic kroner to rise versus the U.S. dollar in that period. This investment is open until 23rd January 2004 and is called JBPB Asia+ 2007.

This Icelandic kroner-denominated (ISK) bond issued by Jyske Bank A/S combines a fixed-rate investment that protects capital but also provides an equity link to five major equity indices.

Funds will be invested both in the ISK money market and equally in

financial instruments based on the following equity indices:

FTSE/Xinhua China 25 Index – the 25 largest companies in mainland China.

Korea Kospi 200 Index – comprising the 200 largest companies in South Korea.

Tokyo Topix Index – approx. 1,500 of the largest companies in Japan.

S&P 500 – the 500 largest market-leaders in the US.

DJ EuroStoXX 50 – selected listed, market-leaders in the euro-zone.

JBPB Asia+ 2007 matures after three years. If the bonds are held until maturity, you are guaranteed redemption in Icelandic dollars at par on 26 January 2007.

The advantages include:

* Yield – Possibility of a yield based on the development of the five indices.

* Safety – Repayment at par in Icelandic dollars regardless of the performance of the equity markets during the term of the investment.

* Liquidity. Your bonds may be sold back to us at any time at market price.

* Ease. – You need not spend time or energy on picking and tracking individual

investments.

* Diversification – Your investment works in five major markets.

* Capital Growth – The actual return on your investment depends on the performance of the five indices during the investment period and the participation ratio which will be fixed on 26 January 2004 at an anticipated ratio of 90%.

* Currency protection. This investment represents and investment in the US dollar, Japanese yen, South Korean won, Chinese yuan and Euro.

The investment will pay about 90% of the average increase of the five equity

indices. If the value of the five indices remains unchanged or has declined compared with the opening value (26 January 2004), your return will be zero (0%). However you are guaranteed to receive your original investment in Icelandic dollars.

Learn in Friday’s message Jyske’s expectations in these markets. Until then, good investing!

Gary


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