|PRODUCT DISCLOSURE SHEET
(Read this Product Disclosure Sheet before you decide to take out
the NIDC. Be sure to also read the general terms and conditions where
1. What is this product about?
This is an Islamic Negotiable Instrument (INI) with maturity of [TBD*] months/years
from the date of issue. The customer will receive the selling price amount (principal
plus profit) if the INI is held to maturity. This product is NOT covered by
the Malaysia Deposit Insurance Corporation (PIDM).
2. What is the applicable Shariah contract?
- The applicable Shariah contract is Bai’
- This refers to a method of sale with deferred
payment basis at a price which includes a profit margin agreed by the Bank
3. What do I get from this
- Minimum nominal value of NIDC : above RM
60,000, or its equivalent amount if the INI is denominated in foreign currency
- Issuance : Principal value of [ TBD ] at
price of [ TBD]
- Profit rate: [TBD] % p.a.
- Underlying assets used :Identifiable asset
owned by Bank Islam
- Profit payment frequency : [TBD]
- Profit proceeds calculation :
= Principal Value x Profit rate x Applicable tenor
4. What are the other key
terms and conditions of this product that I should know?
- Early Withdrawal by Customers :
Customers should only redeem this INI on the maturity date. Any withdrawal
of the INI prior to the maturity date will be at a price (quoted in terms
of per 100 nominal value) specified to four decimal places that will be
published by the Bank and/or based on the following calculation:
proceeds = Nominal Value x Quoted Price/100
and may result in a partial
loss of the principal amount.
- Call Option by the Bank: (where applicable)
The Bank may terminate or call part of the INI prior to the maturity date
by way of providing the customer the published price whereby, the nominal
amount of the terminated or called portion is returned together with any
- Procedures for redemption of interim
profit proceeds : ( where applicable)
- Procedures for redemption upon maturity:
( where applicable)
5. What are the fees and charges that I have to pay?
6. What are the risks involved?
Investors will be exposed to the following risks:
Market risk : refers to
the potential impact of adverse price movements ( e.g. profit rate, foreign
exchange rates or equity prices, where applicable ) on the economic value
of an asset;
Credit risk : refers to
the potential that a counterparty fails to meet its obligations in accordance
with agreed terms and conditions;
Liquidity risk : refers
to the potential loss arising from the Bank’s inability either to meet its
obligations or to fund increases in assets as they fall due without incurring
unacceptable costs or losses;
Operational risk: refers
to the potential loss resulting from inadequate or failed internal processes,
people and systems or external events.
7. What do I need to do if there are changes to my personal details?
It is important that you inform us of any changes in your personal details immediately
to ensure that all correspondences will reach you in a timely manner.
8. Where can I get further information?
Should you require additional information about investments, please
refer to the bankinginfo booklet on “Investing Your Money”, available at all
our branches and the www.bankinginfo.com.my
If you have any enquiries, please contact us at:
Bank Islam Malaysia
8th Floor, Wisma Bank Islam
Jalan Dungun, Bukit Damansara
50490 Kuala Lumpur
Tel: 603-2090 1710/11/12
Fax: 603-2088 8686
9. Other Islamic Negotiable Instruments available
The information provided
in this disclosure sheet is valid as at 18/05/2009.
THIS PRODUCT IS PRINCIPAL
GUARANTEED. CUSTOMER WILL BE PAID THE SELLING PRICE UPON MATURITY. IF THE
PRODUCT IS REDEEMED OR SOLD PRIOR TO MATURITY, THE CUSTOMER MAY LOSE PART
OF THE SELLING PRICE. THIS PRODUCT IS NOT COVERED BY PERBADANAN INSURANS
*[TBD]: to be determined
at the point of deposit placement.
**PIDM coverage is subject
to change from time to time. Refer to PIDM for the latest update. All INIs held
by non-banks are currently fully guaranteed by the Government through PIDM until
31 December 2010.
Note : Information contained herein is accurate as of
the a time of publishing and subject to change in accordance with applicable
rules, regulations or guidelines issued by Bank Negara Malaysia from time to