ANGLO Irish Bankcorp has launched a global tracker bond with a guaranteed return after five and a half years.

The guarantee works in one of two ways. Investors can opt for a minimum return of the initial investment, as well as 25 per cent of the growth in the selected indices.

The slightly riskier option only guarantees a return of capital. However participation in the selected indices is 150 per cent, rather than 100 per cent on the former option.

The lock in guarantee is triggered if the combined growth of the selected indices is 50 per cent at any time over the first four years or during the last 18 months the cumulative average of the daily closing value of the indices reaches 50 per cent. This protects the investment against any last minute market downturns.

With the Guaranteed Capital Plus, the minimum return would then rise to 50 per cent from 25 per cent while the minimum guaranteed on the second option would rise from nothing to 75 per cent.

For example, £10,000 invested in the first option would return £11,825 after the full term if the indices do not grow. The second option would only give a return of the £10,000.

However if the 50 per cent growth point is reached, the first option will provide a return of £13,650 compared to £15,475 under the capital only guarantee option.

If the indices grow by more than 50 per cent at maturity the additional growth will also be paid, according to Mr Colm Murphy, business development manager at the treasury.

The bond will track a world index including the US, Europe, Britain and Japan. The indices include the Standard & Poors 500 and the FTSE Eurotrack 200, which is a combination of the FTSE Eurotrack 100 and the FTSE 100. The final third is made up of the Nikkei 225.

The bond will close on May 17th and investment will take place on May 23rd. Mr Murphy said the office is hoping to raise the maximum subscription of £5 million. The minimum investment is £2,000 and DIRT tax will be payable at 27 per cent on any growth in excess of the initial investment.

There are no charges payable but there are no guarantees on the level of return if you cash in the bond early.

"Our aim is to provide investors with a highly competitive guaranteed product. We also wanted to give investors additional guarantees, hence the lock in feature," Mr Murphy said.