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’ Bithaman Ajil.
• This refers to a method of sale with deferred payment basis at a price which includes a profit margin agreed by the Bank and customer.
   

3. What do I get from this product?

• 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 : 

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:

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 accrued profit
   
• 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?
Nil.

6. What are the risks involved?

Investors will be exposed to the following risks:

1. 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;
2. Credit risk : refers to the potential that a counterparty fails to meet its obligations in accordance with agreed terms and conditions;
3. 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;
4. 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 website.

If you have any enquiries, please contact us at:

Bank Islam Malaysia Berhad
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
Nil

The information provided in this disclosure sheet is valid as at 18/05/2009.

 WARNING:

*[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 time.