Ulster Bank has launched an investment bond which offers investors an annual dividend of 5.25 per cent each year. The dividend bond is a three-year fixed-term investment and the capital value at maturity is linked to the performance of the Dow Jones EuroStoxx 50 Index. At the end of the three-year period, investors will be repaid all of their original capital provided the EuroStoxx 50 Index has not fallen by more than 10 per cent over the term. Any fall in excess of 10 per cent will be deducted from investors' capital at the end of the term. Ulster Bank regional director, Mr Richie Boucher, said the annual dividend will be paid out each year irrespective of the performance of the index. Dividends are subject to tax at source at the standard rate of 24 per cent, making a net dividend of 4.75 per cent to be paid to shareholders. The product is attractive in a low-interest rate environment, but investors should note that their capital is not guaranteed. The funds will be invested in the 50 top companies across the euro zone and will include companies such as Siemens in Germany, Philips in the Netherlands and France Telecom. A minimum investment of £25,000 (€31,743.45) is required. The closing date for applications is July 30th next. However, it may close earlier depending on the demand. The bond is due to commence on August 2nd next and matures on August 5th, 2002.