Deutsche plans two BRIC offerings; Eksportfinans to price notes linked to Latin American Large Caps

By Sheri Kasprzak

New York, March 6 - Deutsche Bank AG, London Branch headed up structured products news on Tuesday with news that it plans to price not one but two appreciation notes linked to the Brazilian real, the Russian ruble, the Indian rupee and the Chinese renminbi.

One market source said BRIC offerings are one of the few emerging markets offerings that still have some value following the substantial drop in the stock market last week.

He noted that most emerging markets currencies have lost their recent gains in the turmoil of the past week, echoing the recent sentiment of another market source, this one at Lehman Brothers.

"BRIC offerings, as far as EM offerings go, are likely to be more prevalent just because everything else has pretty much fallen off," he noted.

"I wouldn't necessarily say that EM is off forever but for now BRIC is one of the few [baskets] that will be strong in the market right now."

The Lehman market source noted that foreign exchange volatility is up and that will partially offset currency losses in principal-protected notes.

Offering terms

The terms of the two BRIC notes are almost identical. One of the notes matures Sept. 14, 2008 and the other on Sept. 29, 2008. Both zero-coupon notes are principal protected.

For one of the notes, the payout at maturity is par plus the basket performance with a minimum addition of 17%, assuming the basket performance is greater than zero. If the performance is less than or equal to zero, investors receive par at maturity.

The other note pays par at maturity plus the basket performance with a minimum addition of 11%, assuming the basket performance is greater than zero. If the performance is less than or equal to zero, payout is par.

Both notes are set to price March 22.

No one contacted at Deutsche Bank could comment on the pair of BRIC notes Tuesday.

Eksportfinans' LatAm deal

Elsewhere in emerging markets offerings, Eksportfinans ASA announced plans to price 16% reverse convertibles linked to Latin American Large Caps.

The six-month notes are being sold through IXIS Securities North America Inc.

The notes are linked to the stocks of Companhia Vale do Rio Doce, Petroleo Brasileiro SA - Petrobras and Banco Bradesco SA.

The knock-in level for the notes is 80%. Payout at maturity will be par in cash unless at least one of the reference stocks hits the knock-in level. In that case, payout will be a number shares from the worst-performing reference stock equal to the share redemption amount, if the final reference level is of the worst performing reference shares on the determination date is less than the corresponding initial reference level for the reference stock.

The notes are set to price March 23.

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