The bond is linked to the performance of the FTSE 100 index and will return investors original capital regardless of the performance of the index.
An early maturity trigger will apply in year three if the index rises by at least 30 per cent. Where this happens, investors will receive 30 per cent growth plus their original investment.
However, if this does not happen the product will run full term, providing growth of 150 per cent of the rise in the index plus the original capital. To calculate the returns, the closing level of the index is taken at the start of the term and compared with an average produced over the final 12 months of the term.
According to the new products database on the Structured Retail Products website, there are currently no other offshore structured products with a term of five years and six months. The closest competitor is Britannia Internationals optimum growth bond, which has a six year term but has the potential to mature in year three.
Investors in this product will receive 33 per cent growth at the end of three years plus their original capital if the index rises by at least 33 per cent. Otherwise, the product will run full term, providing 125 per cent of the growth in the FTSE 100 index.
Some investors may prefer the shorter term of the Alliance & Leicester product. This also has higher growth potential compared with the Britannia International product if the product runs full term, despite the term being six months shorter.
However, at the early maturity point, the Britannia International product offers a slightly higher return, although this is matched by the index performance also being set at a slightly higher level compared with the Alliance & Leicester product.