The extra income plan issue 26 is a five-year plan offering investors 0.67 per cent income per month, equivalent to 8.04 per cent per annum.
Investors will receive their capital in full unless the FTSE 100 index falls by 50 per cent or more at the end of the investment term regardless of market fluctuations during the period.
If the FTSE 100 breaches the 50 per cent barrier on the final value date capital will be lost by 1 per cent for each 1 per cent that the final index level is below the strike level.
Research conducted by Keydata shows that from inception in 1984 the FTSE 100 has never experienced a five year spot-to-spot period when it has fallen by 50 per cent or more.
The plan is open for investment until May 8 with a minimum investment of £3,600.
The counterparty is Citigroup Global Markets Ltd, an affiliate of Citigroup Inc. rated A by Standard & Poor’s as at March 16.
Keydata sales and strategy director Mark Owen says: “Investors are desperately hunting for income but are worried about the risk that seeking greater returns can sometimes carry. Our research shows that the likelihood of the FTSE 100 falling by 50 per cent during a five year period is extremely small and we think investors understand that and so will be attracted to the plan.”