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Bonds/Sukuk

Bonds/Sukuk

A capital markets instrument which offers income and potential capital protection

  • Minimum Investment

    RM 250,000

What are Bonds/Sukuk?


Bonds/Sukuk are debt securities whereby when you purchase a bond, you are lending money to the issuer. In return for the money invested, the issuer will pay you a specified rate of interest (a.k.a coupon) and repays the principal amount or par value upon maturity or when the bond is called.

  • Receive periodic coupon payments at a pre-determined rate and period, and the par value upon maturity or when the bond is called by the issuer.
  • Can be traded (buy or sell) prior to the maturity date, provided a counterparty is found at the best effort basis of the Bank.
  • Minimum investment amount (depending on respective bond papers):
    MYR Bond: MYR250,000
    USD Bond: USD100,000
    AUD Bond: AUD250,000
    SGD Bond: SGD250,000
    IDR Bond: IDR500million

    

Benefits


  • Diversify your investment portfolio as bonds can help reduce volatility and preserve capital for equity investors during the times when the stock market is falling.
  • Bonds pay a fixed coupon payment at regular intervals on pre-determined dates, provided there are no defaults.
  • Hedge against economic slowdown by making bond income a source of return.
  • Enjoy capital appreciation by selling bonds after they have risen in price.
  • Enjoy potential higher returns than Fixed Deposit.
  • Bonds are generally less volatile than equities and therefore considered as conservative investment.
  • Opt to diversify portfolio on foreign currencies investment.
  • No upfront service charge, subscription fee, or redemption fee.

Eligibility


  • Individual customers with total net personal assets exceeding Ringgit Malaysia Three Million (RM3,000,000) or its equivalent in foreign currency
  • Companies with total net assets exceeding Ringgit Malaysia Ten Million (RM10,000,000) or its equivalent in foreign currency, based on the last audited accounts.

Characteristics


Par Value : Also called principal amount. The amount to be paid back to bondholder at maturity.
Coupon : The periodic payment made by the issuer to bondholders.
Maturity Date : The date of which a bond matures / expires.
Call Date : The date of which the issuer has the right to redeem the bond prior to maturity.

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