[Michael]

Originally Posted by Taipan

This is my take:
The 19% (yield to maturity, whatever that means) sounds nice, but on reading the memorandum, you discover that all you get is actually 11.01% and I can get better than that with a Nigerian fixed deposit account (13%pa on N1m). In addition, you'll probably have to buy the dollars at the prevailing exorbitant rates (about N150 to the dollar) and if unfortunately, the naira appreciates - as it probably would - in the next few years (say to the previous rates of about N120), you'll find that you've lost so much after the conversions to dollar and vice-versa. At the end of 3yrs, you might be looking at a total interest of about 12% (if rates drop from N150 to N130 in 3yrs) and 4%(if rates drop to N120)!
I would like to believe this is meant for people who already hold dollars as US banks don't offer such interest rates. But if I were a Nigerian with that much dollars, I'll convert it to Naira - about N7.5m for $50k - and then fix it at about 14%pa.
Ultimately, I don't see the attraction. But of course, not many people read memorandums.

PS: Maybe I'm making a big mistake somewhere. You tell me.

Anything Tied to the dollar these days is tied to breeze! I see no attraction here!