Frequently Asked Questions

MRT Project


What is the MRT Project?

 

The MRT Project is a proposed three-line Mass Rapid Transit system in Kuala Lumpur / Klang Valley. It is one of the projects under Greater Kuala Lumpur - Klang Valley Public Transport Masterplan. The project was announced in December 2010 by the Government of Malaysia, and was launched by Prime Minister YAB Dato’ Sri Mohd Najib bin Tun Abdul Razak on 8 July 2011.

 

The MRT will be integrated with the LRT, Monorail, KTM Komuter and intra/ inter-city buses and will help alleviate traffic congestion.

 

The first line of MRT Project is the Sungai Buloh – Kajang Line (“SBK Line”), which stretches 51km and with 31 stations.

 

The second MRT line is the MRT Sungai Buloh – Serdang – Putrajaya (“SSP”) Line, which stretches for 52.2km and will have 37 stations.

 

Where can I get more information regarding the MRT Project?

 

Further information on MRT Project can be obtained from MRT Corp’s website at www.mymrt.com.my or by contacting MRT Corp directly.

 

Postal Address :               

Tingkat 5, Menara I & P 1,
No. 46, Jalan Dungun, Bukit Damansara,
50490 Kuala Lumpur, Malaysia.
Tel: +603-2095 3030    Fax: +603-2095 2121

 

DanaInfra Nasional Berhad


What is DanaInfra?

 

DanaInfra is an infrastructure funding entity established on 3 March 2011 and is a company wholly-owned by the Minister of Finance, Incorporated. It has an authorised share capital of RM100.0 million and a paid-up capital of RM10.0 million.

 

Why is there a need for DanaInfra?

 

DanaInfra was established pursuant to the Economic Council’s decision on 14 June 2010 after in-depth consideration for the need to have an Infrastructure Financing Entity (“IFE”) to advise and undertake funding for the proposed Mass Rapid Transit project (“MRT Project”). The main objectives of the IFE are as follows:

  • Separate fund raising activity from infrastructure construction
  • Develop the most cost competitive, efficient and sustainable financing models
  • Maintain Government’s fiscal position through most competitive financing and timely disbursement of fund
 

What is DanaInfra’s role vis-a-vis the Government of Malaysia?

 

DanaInfra’s role is to raise the financing for infrastructure projects in Malaysia that has been identified by the Government. The mandates entrusted to DanaInfra include amongst others:

  • Advise on best methods of fundraising exercise and most effective payment structures
  • Develop best structures for long-term funding at efficient cost
  • Execute and implement fundraising and payment strategies
  • Identify strategic investors

In line with these mandates, DanaInfra is responsible to source for financing of the Sungai Buloh – Kajang MRT line (“SBK Line”) and Sungai Buloh – Serdang – Putrajaya line (“SSP Line”).

 

Will DanaInfra only be financing the MRT project? If not what are DanaInfra's other principal activities?

 

DanaInfra’s current mandate includes to undertake fundraising exercise for MRT SBK Line and SSP Line. In June 2015, DanaInfra has also been mandated to undertake fundraising exercise for the construction of Pan Borneo Sarawak Highway Project (Phase 1).

 

Who sits on the Board of DanaInfra?

 

The composition of the Board of DanaInfra is as follows:

  • Dato’ Sri Dr. Mohd Isa Hussain - Deputy Secretary General of Treasury (Investment) , Ministry of Finance
  • Datuk Ahmad Badri Mohd Zahir - Director of National Budget, National Budget Office, Ministry of Finance
  • Puan Norzila Abdul Aziz - Assistant Governor, Bank Negara Malaysia
  • Dato' Asri Hamidon - Under Secretary of the Government Investment Companies Division (GIC), Ministry of Finance
  • Dato' Dr. Yusof Ismail - Under Secretary of Strategic Investment Division (SID), Ministry of Finance
  • Encik Aznul Shazri Abdullah - Managing Director, 3P Capital Partners Sdn Bhd
  • Dr. Sivabalasingam Veerasingam - Under Secretary of the Fiscal and Economics Division, Ministry of Finance
 

How will DanaInfra finance the repayment of the Sukuk to be issued under the ICP/IMTN Programme?

 

The repayment of the Sukuk will be from the annual funding allocations from the Government.

 

What is DanaInfra framework?

 

DanaInfra framework which indicates clear segregation of duties and responsibilities is illustrated as below.

framework dinb2017

 

How is the Funding structure like?

 

The current Funding structure is illustrated below.

funding structure 2017

 

ICP/IMTN Programme


What is the ICP/IMTN Programme?

 

The ICP/IMTN Programme are Islamic Commercial Papers (“ICP”) and Islamic Medium Term Notes (“IMTN”) Programme (“ICP/IMTN Programme”) established by DanaInfra to raise financing to fund the SBK Line and SSP Line of the MRT Project. At present, the ICP/IMTN Programme has a limit of up to RM46.0 billion in nominal value and irrevocably and unconditionally guaranteed by the Government of Malaysia.

 

Who is the issuer of the ICP/IMTN?

 

DanaInfra Nasional Berhad.

 

What is the Tenure of the ICP/IMTN Programme?

 

The ICP/IMTN Programme has a tenure of up to fifty (50) years from the date of the first issuance of Sukuk under the ICP/IMTN Programme.

 

For the ICPs: The ICPs can be issued for any tenure of one (1), three (3), six (6), nine (9) and up to twelve (12) months as the Issuer may select, provided that the maturity date of the ICPs shall not extend beyond the tenure of the ICP/IMTN Programme.

 

For the IMTNs: The IMTNs shall have maturities of more than one (1) year but not exceeding fifty (50) years.

 

Is the ICP/IMTN guaranteed?

 

The ICP/IMTN Programme is backed by a guarantee by the Government of Malaysia. Repayment shall be made through annual allocations by the Government on deferred payment basis.

 

Describe the guarantee provided

 

The guarantee is an irrevocable and unconditional obligation by the Government in favour of the Facility Agent (on behalf of the Sukukholders) whereby the Government guarantees the payment by DanaInfra of the Guaranteed Amount. If for any reason DanaInfra fails to make payment of the ICP/IMTN when due, the Sukukholders shall have the right to enforce the guarantee for the Government to pay the Guaranteed Amount.

 

What is the “Guaranteed Amount” referred to above?

 

The “Guaranteed Amount” refers to all monies and liabilities (whether actual or contingent) that is owing or payable or expressed to be due owing or payable by DanaInfra. In relation to the ICP/IMTN Programme, the guaranteed amount covers:

(a) the nominal value of the Sukuk; and

(b) in the case of IMTNs with periodic profit payments, any accrued profit thereon.

Provided that the combined aggregate outstanding nominal value of the Sukuk and the outstanding principal amount under the SFF-i Facility guaranteed by the Guarantor shall not exceed RM46.0 billion at any one time

 

Why does the financing for the MRT Project have to be Government Guaranteed?

 

The MRT Project is essentially an infrastructure project which is undertaken for the benefit of the Rakyat. The Government wants to ensure that the MRT Project can be funded in a cost-efficient manner so that any cost-savings can be passed on to the Rakyat. Also, due to the nature of the project and the long gestation period, the repayment profile of any fund-raising will naturally have to be long-tenured. As such, the current proposed mode of financing is the most viable and efficient from a cost and size perspective.

 

Is this an Islamic transaction?

 

Yes.

 

Can the transaction structure be changed to a conventional structure?

 

No.

 

Why is there no restriction on further indebtedness on DanaInfra in the financing terms?

 

DanaInfra may be used as the financing vehicle to facilitate the fund raising of future Government infrastructure projects. As such, the financing terms allow DanaInfra to undertake further financings in the future.

 

What Shariah Principles shall be utilized under the ICP/IMTN Programme?

 

The underlying Shariah principles used under the ICP/IMTN Programme is Murabahah (via a Tawarruq arrangement). DanaInfra has the option to change to other Shariah principles. Any changes in Shariah principles will be determined prior to each ICP/IMTN issuance.

 

Why is there a need for the SFF-i Facility?

 

The SFF-i Facility is to complement the ICP/IMTN Programme and works as a back-stop funding for DanaInfra.

 

Can the limit of the ICP/IMTN be increased?

 

The limit of the ICP/IMTN Programme of RM46.0 billion may, at the option of the Issuer, and without further reference to or consent by the Sukukholders, be increased provided that any Sukuk issued pursuant to the increased limit shall be irrevocably and unconditionally guaranteed by the Government.

 

Will the investors of the Sukuk be exempted from taxes including income tax from the profits/coupons under the Sukuk?

 

DanaInfra has been granted remission of tax and stamp duty under the Loans Guarantees (Bodies Corporate) (Remission of Tax and Stamp Duty). With this, any tax payable by DanaInfra or any holders of the Sukuk will be remitted in full.

 

What would the proceeds of the ICP/IMTN Programme be utilised for?

 

The proceeds of the ICP/IMTN Programme will be used to finance the capital expenditure and operating expenses in relation to the development of the MRT Project SBK Line and SSP Line including but not limited to the following:

  • Progressive payments to contractors;
  • Purchase of equipment;
  • Settlement of advances from any relevant entities;
  • Pre-construction costs including but not limited to financing costs, financial advisor’s fee, advisory costs and fees for solicitors, project delivery partners and independent consultant engineers;
  • All operating expenses including but not limited to all pre-operating expenses, costs relating to the tender process, administrative, financial, legal and staff costs incurred by the Issuer and/or MRT Corp in relation to the MRT Project; and
  • To refinance any bridging facility or other credit lines undertaken by the Issuer in relation to the MRT Project
 

Is the ICP/IMTN Programme rated?

 

The ICP/IMTN Programme is guaranteed by the Government and therefore, not rated.

 

Is the Sukuk issued under the ICP/IMTN transferable?

 

Yes, the Sukuk are transferable.

 

What is the difference between the JLAs and the JLMs?

 

The JLA’s role is to structure and execute a complete financing requirement, coordinating with related parties such as legal advisors, reporting accountants, rating agencies etc.

 

Whilst the JLM’s role is to jointly raise the required funding either through participation in a lending syndicate or sale of debt instrument to potential investors through a book running process. They may also take up a portion of the financing to be issued themselves.

 

In DanaInfra’s case, the 4 JLAs also provide commitment for the SFF-i Facility.

 

Who are the Facility Agent and Shariah Adviser for the ICP/IMTN Programme?

 

The Facility Agent is CIMB Investment Bank Berhad and the Shariah Adviser is CIMB Islamic Bank Berhad.

 

Is there a Central Depository and Paying Agent?

 

Yes. Bank Negara Malaysia.

 

What happens when the Sukuk is temporarily unable to be issued to finance the MRT project along the way? Wouldn’t that impact the MRT project?

 

DanaInfra has a standby facility that is the Syndicated Islamic Revolving Credit Facility which serves to ensure availability of funds at all times. We will ensure that the funding requirements for the MRT Project will be met.

 

Is there any special condition attached to the Issuer?

 

Yes, as the Issuer, DanaInfra will ensure that the Minister of Finance (Incorporated) holds directly and/or indirectly at least fifty one per centum (51%) of the ordinary paid-up share capital of the Issuer at all times.

 

SFF-i Facility


Describe the facility to be provided under the SFF-i Facility

 

The SFF-i Facility is a Syndicated Revolving Credit-i Facility of up to RM8.0 billion only, irrevocably and unconditionally guaranteed by the Government.

 

Who is the customer to the SFF-i Facility?

 

DanaInfra Nasional Berhad.

 

What is the Tenure of the SFF-i Facility?

 

Five (5) years with an option to extend for another one (1) year.

 

Is the SFF-i Facility Guaranteed?

 

Yes, it is guaranteed by the Government of Malaysia.

 

Describe the guarantee provided.

 

The guarantee is an irrevocable and unconditional guarantee by the Government of Malaysia.

 

What is the “Guaranteed Amount” referred to above?

 

In relation to the SFF-i Facility, the Guaranteed Amount refers to the Selling Price (principal and profit payment). 

 

Is this an Islamic transaction?

 

Yes.

 

What is the underlying Shariah Principles used under the SFF-i Facility?

 

The Shariah principles of Murabahah (via Tawarruq arrangement).

 

Can the transaction structure be changed to a conventional structure?

 

No.

 

What would the proceeds of the Proposed SFF-i Facility be utilised for?

 

The proceeds of the Proposed SFF-i Facility will be used to finance the following capital expenditure and operating expenses in relation to the development of the MRT Project SBK Line and SSP Line, including but not limited to the following:

  • Progressive payments to contractors;
  • Purchase of equipment;
  • Settlement of advances from any relevant entities;
  • Pre-construction costs including but not limited to financing costs, financial advisor’s fee, advisory costs and fees for solicitors, project delivery partners, and independent consultant engineers;
  • All operating expenses including but not limited to all pre-operating expenses, costs relating to the tender process, administrative, financial, legal and staff costs incurred by DanaInfra and/or MRT Corp in relation to the MRT Project; and
  • To re-finance any bridging facility or other credit lines undertaken by DanaInfra in relation to the MRT Project.
 

Who are the Facility Agent and Shariah Adviser for the SFF-i Facility?

 

The Facility Agent is CIMB Investment Bank Berhad and the Shariah Adviser is CIMB Islamic Bank Berhad.

 

What is the Profit Period/Payment?

 

The profit period shall be 1 week, 2 weeks, 1 month, 2 months, 3 months, 4 months, 5 months or 6 months, at the option of DanaInfra.

Profit shall be paid in arrears on a Profit Payment Date which will be calculated from the date of disbursement. 

 

Is there any special conditions attached to DanaInfra?

 

Yes, DanaInfra shall ensure that the Minister of Finance (Incorporated) holds directly and/or indirectly at least fifty one per centum (51%) of its ordinary paid-up share capital for so long as the indebtedness remains outstanding. 

 

Retail Sukuk


What is DanaInfra Retail Sukuk?

 

DanaInfra Retail Sukuk is an Exchange Traded Bonds / Sukuk (“ETBS”) issued by DanaInfra and guaranteed by the Government of Malaysia.

     

    Why was DanaInfra Retail Sukuk created?

     

    DanaInfra Retail Sukuk is created as part of DanaInfra’s efforts to broaden its investor base by allowing participation by retail investors in funding the national infrastructure project i.e. the MRT Project, whilst diversifying their investment portfolio in the bond / sukuk market. The issuance of retail sukuk is also part of the initiatives under the Capital Market Masterplan 2 to facilitate greater retail participation in the bond and sukuk market and intended to make available a wider range of investment products to retail investors.

     

    What would the proceeds of DanaInfra Retail Sukuk be utilised for?

     

    The proceeds of DanaInfra Retail Sukuk will be utilised to finance the construction and development of the MRT Project.

     

    What are the regulatory bodies governing the ETBS?

     

    The regulatory bodies governing the ETBS are Securities Commission Malaysia and Bursa Malaysia.
    To obtain further information, kindly visit their respective websites as follows:

     

    Is investment in DanaInfra Retail Sukuk secured?

     

    Yes, as DanaInfra Retail Sukuk is guaranteed by the Government of Malaysia.

     

    Will DanaInfra Retail Sukuk be rated?

     

    DanaInfra Retail Sukuk is guaranteed by the Government and therefore, not rated.

     

    Is DanaInfra Retail Sukuk listed and tradeable?

     

    Yes, DanaInfra Retail Sukuk is listed and traded under Bursa Malaysia.

     

    Where can I get more information on the terms of DanaInfra Retail Sukuk?

     

    For more information on the terms, you may visit www.danainfra.com.my.

       

      Who would this instrument / sukuk be suitable for?

       

      The instrument is suitable for retail investors who are looking for diversification into long term investment with guaranteed payment of Profit and Face Value at maturity.

       

      DanaInfra Retail Sukuk is guaranteed by the Government. Is that similar to how fixed deposits are guaranteed under Perbadanan Insurans Deposit Malaysia (“PIDM”)?

       

      PIDM insures up to RM250,000 worth of principal and profit for deposits with licensed financial institutions. The Profit Payments and Face Value under DanaInfra Retail Sukuk are fully guaranteed by the Government.

       

      To date, what is the total size of the DanaInfra Retail Sukuk issued?

       

      A total of RM500 million of Danainfra Retail Sukuk has been issued as at July 2017.

       

      What is the tenure of DanaInfra Retail Sukuk issued?

       

      DanaInfra has issued Retail Sukuk with 7, 10 and 15 years tenure.

       

      Would DanaInfra be making more issuance of Retail Sukuk in the future?

       

      It is the intention of DanaInfra to issue more Sukuk in the future to finance the MRT Project if deem appropriate.

       

      What will be the minimum and maximum amount of subscription?

       

      The minimum subscription amount is RM1,000. There is no maximum limit for the subscription amount. Subscriptions will be in multiples of RM1,000.

       

      What happens if DanaInfra Retail Sukuk is over-subscribed?

       

      The Issuer will conduct a ballot to determine the allocation to retail investors in a fair and equitable manner.

       

      How is the Profit Rate being determined?

       

      The Profit Rate is determined at the close of the book building of the institutional offering based on the demand and the prevailing market interest rate.

         

        Is DanaInfra Retail Sukuk Shariah-compliant?

         

        Yes, DanaInfra Retail Sukuk is a Shariah-compliant investment. CIMB Islamic Bank Berhad as the Shariah adviser ("Shariah Adviser") has issued a Shariah pronouncement in respect of DanaInfra Sukuk and its compliance with Shariah principles.

         

         

        Who is eligible to apply for DanaInfra Retail Sukuk?

         

        To apply for DanaInfra Retail Sukuk, you must be one of the following: 

         

        1. A Malaysian citizen who is at least 18 years old as at the closing date of the retail offering with a Malaysian address
        2. A corporation / institution incorporated in Malaysia with majority shareholding (excluding preference shares) held by Malaysian citizens
        3. A superannuation, cooperative, foundation, provident or pension fund established or operating in Malaysia

         

        Applications from trustees, persons under 18 years of age, sole proprietorship, partnerships or other incorporated bodies or associations, other than corporations, institutions, referred to (2) and (3) above or the trustees thereof will not be accepted.

         

        To invest in DanaInfra Retail Sukuk, do I need to have a bank account and Internet access?

         

        • No requirement for a bank account if application is made via application form to Malaysian Issuing House Sdn Bhd.
        • No requirement for Internet access as application can also be made via application form or the Automated Teller Machines (“ATMs”) of selected Participating Financial Institutions
         

        How do I open CDS account?

         

        Individual account

        Step 1: You can request for a CDS Opening Account Form from AmInvestment Bank Berhad, CIMB Investment Bank Berhad, Maybank Investment Bank Berhad or RHB Investment Bank Berhad. You must be at least 18 years old to open an account.
        Step 2: Complete the Opening of Account form and two (2) Specimen Signature Cards.
        Step 3: Submit the documents together with two (2) copies of your National Registration Identity Card (“NRIC”).
        Step 4: Pay Account Opening Fee of RM10 to Bursa Depositary (“BD”).

          

        Company account

        Step 1: Complete the Opening of Account form and two (2) Specimen Signature Cards.
        Step 2: Submit the above documents with two (2) copies of all necessary supporting documents (e.g. Certificate of Incorporation, Board Resolution, etc) together with the Account Opening fee of RM10.
         

        Can I use my CDS account for trading purposes?

         

        A CDS account alone will not allow you to buy and sell sukuk. You will need to open a Trading Account with any stockbrokers registered with Bursa Malaysia (also known as Participating Organisations or ‘POs’ in Bursa Malaysia’s website).

           

          What documentation is required when applying for subscription of DanaInfra Retail Sukuk?

           

          No document is required aside from a photocopy of the applicant’s identity card if investors apply for DanaInfra Retail Sukuk via application forms. Alternatively, investors may apply via Internet Banking or the ATMs of the selected Participating Financial Institutions.

             

            Can I apply for DanaInfra Retail Sukuk online?

             

            Yes, you may apply for DanaInfra Retail Sukuk via Internet Banking as follows:

             

            For ATM / Internet Banking application, what does the Mandatory Statements refer to?

             

            Sample of the Mandatory Statements are as follows:

            • I am 18 years of age or older
            • I am a Malaysian citizen with a residential address in Malaysia
            • I agree to the terms and conditions of application stated in the Application Form
            • This is my only application and is submitted at my own risk
            • My personal particulars with the participating bank and Bursa Depository is correct and may be given to the Issuing House and relevant regulatory bodies
               

              How will I know if my application is successful or unsuccessful?

               

              Successful applications - A notice shall be sent to the correspondence address of successful applicants as stated in your CDS account.

               

              For unsuccessful applications, the refund amount will be returned by cheque / credited to your account within 10 business days (for application form applicants) and 4 business days (ATM or Internet applicants) after the balloting day.

                 

                Can I make multiple applications for DanaInfra Retail Sukuk?

                 

                No, each investor can only submit one application per issuance. Multiple applications will render all your applications void.

                   

                  How much processing fee do I need to pay if I apply for DanaInfra Retail Sukuk?

                   

                  You have to pay a processing fee of between RM1.00 to RM2.50 per application for the application made via the ATMs or Internet banking of the Participating Financial Institution. 

                   

                  For manual application, the application form is given for free.

                     

                    How much is the transaction cost to buy and sell DanaInfra Retail Sukuk?

                     

                    There will be no fee at the point of subscription. However, the transaction cost in the secondary market is 0.33% of the trade value.

                       

                      Who shall pay for the transaction cost?

                       

                      The retail investors will have to bear their respective transaction cost.

                         

                        How often will Profit Payments be paid to the holders of DanaInfra Retail Sukuk?

                         

                        The Profit Payments will be paid semi-annually.

                           

                          What are the trading hours for DanaInfra Retail Sukuk?

                           

                          Trading hours for all instruments listed and traded on Bursa Malaysia on business days are as follows:

                           

                          Morning session : 9.00am to 12.30pm
                          Afternoon session: 2.30pm to 5.00pm

                           

                          The same trading hours apply to DanaInfra Retail Sukuk.

                             

                            What will happen to my investment in DanaInfra Retail Sukuk should the MRT project fail?

                             

                            Your investment will not be affected as the Profit Payments and Face Value of DanaInfra Retail Sukuk are fully guaranteed by the Government, irrespective of the outcome of the MRT Project.

                             

                             

                            How can the investors obtain the latest pricing of DanaInfra Retail Sukuk?

                             

                            Latest pricing of DanaInfra Retail Sukuk can be obtained from Bursa Malaysia’s website (www.bursamalaysia.com).

                               

                              Will the Profit Rate fluctuate during the tenure of the DanaInfra Retail Sukuk?

                               

                              No, as the Profit Rate per annum will be fixed throughout the tenure of DanaInfra Retail Sukuk.

                                 

                                What are the key differences between ETBS and shares?

                                 

                                The key differences are:

                                1. ETBS holders are essentially financiers of the company, while shareholders are owners of the company
                                2. ETBS holders’ profits are at a fixed rate via steady periodic payments known as coupons / profits. Meanwhile, for shareholders, profits are termed as dividend payments of which are based on the company’s performance and they are paid at the discretion of the company
                                3. Investment in ETBS would involve a fixed maturity period, while investment in shares do not have a maturity period.
                                   

                                  What are the differences between ETBS and other retail investments such as unit trust?

                                   

                                  Unit trust represents a pool of investments of a group of investors to invest in diversified portfolio of investments including bond / sukuk through fund managers. In ETBS, retail investors can directly invest in any retail bond / sukuk.

                                     

                                    What are the factors affecting the yield and price of a bond / sukuk?

                                     

                                    The factors affecting the yield and price of a bond / sukuk among others include the movement of market interest rate, demand and supply of the bond / sukuk, credit risk of the issuer and the level of inflation.

                                       

                                      How are the bond / sukuk prices quoted on the exchange? Does it take into account the periodic coupon / profit payments of the bond / sukuk?

                                       

                                      At the point of issuance, prices quoted on the exchange will be RM100.


                                      The price will change due to movement in market interest rates, remaining period to maturity as well as accrual of coupon / profit payable for the period.


                                      Kindly refer to www.bondinfo.bnm.gov.my for further details on bonds / sukuk.

                                         

                                        How will I get paid on the coupon / profit? Is it similar to stocks?

                                         

                                        Coupon / profit payments will follow the current dividend payment setup for your trading account, either through electronic payment or cheque from the Issuer's paying agent.


                                        The Profit Payment will be credited directly into the bank account of the holders of DanaInfra Retail Sukuk as indicated in the CDS account. 

                                         

                                        For those without details of bank account in the CDS account, a cheque will be mailed to the correspondence address maintained in the CDS account. Kindly refer to Bursa Malaysia’s website at www.bursamalaysia.com for further details.

                                           

                                          How is the coupon / profit payment calculated?

                                           

                                          The coupon / profit payment is calculated using the following formula:


                                          Profit payable = Profit Rate (“PR”) x Face Value (“FV”) x (holding period / 365 days)

                                           

                                          Assumptions:
                                          PR : 4% per annum
                                          FV : RM1,000


                                          The calculation for annual coupon / profit payment may be illustrated as follows:
                                          = 4% x RM1,000 x (365 days / 365 days)
                                          = RM40.00


                                          Since coupon / profit is paid semi-annually, the coupon / profit payment per payment period is:
                                          = RM40.00 / (182 days / 365 days)
                                          = RM19.95


                                          Coupon / Profit will be paid to investors semi-annually until maturity.

                                             

                                            How to calculate the value of bond / sukuk?

                                             

                                            To calculate the value of your bond / sukuk, you can use the online bond / sukuk calculator available in Bursa Malaysia’s website at www.bursamalaysia.com/etbs.

                                               

                                              Is there any restriction to the holding period for the holders of DanaInfra Retail Sukuk?

                                               

                                              There is no holding period. Holders of DanaInfra Retail Sukuk may sell his / her holding at any time from the date of listing, or choose to hold to maturity.

                                                 

                                                When is the right time for a retail sukuk holder to sell his / her holding?

                                                 

                                                At the time of issue of the sukuk, the profit rate and other conditions of the sukuk will have been influenced by a variety of factors, such as current market interest rates, the length of the tenor and the creditworthiness of the issuer.


                                                With the creditworthiness of the issuer backed by Government Guarantee, the factor that would likely change over time is the market interest rates.

                                                 

                                                The market price of a sukuk is the present value of all expected future profit and principal payments of the bond discounted at the sukuk's redemption yield, or rate of return. That relationship is the definition of the redemption yield on the sukuk, which is likely to be close to the current market interest rate for other sukuk / bonds with similar characteristics. The yield and price of a sukuk are inversely related, hence, when market interest rates rise, sukuk prices fall and vice versa.

                                                 

                                                As such when the market interest rate for other sukuk / bonds with similar characteristics falls below the yield of the sukuk held, the retail sukuk holder may sell his / her holding for a gain on the face value of the sukuk. At the point of sale, any profit accrued shall be paid by the purchaser to the seller.

                                                 

                                                Please consult your professional financial adviser.

                                                   

                                                  How is an ETBS different from the traditional bonds / sukuk transacted by institutions?

                                                   

                                                  The ETBS offered to retail investors have the same characteristics as the bonds / sukuk distributed to institutional investors. The difference lies in the distribution platform for the primary issuance as well as the secondary trading whereby the ETBS are exchange-based while the traditional bonds / sukuk have been traded over the counter or (“OTC”) amongst institutional investors.


                                                  The other difference is in the lot size per transaction whereby ETBS transacted in lots of RM1,000 while institutional investors transact in lot sizes of RM5,000,000.

                                                     

                                                    Can a retail sukuk holder sell his / her holding to an institutional investor?

                                                     

                                                    There is no limitation to whom a retail sukuk holder may sell his/her holdings to. However, institutional investors would normally purchase sukuk in RM5,000,000 lot sizes.

                                                     

                                                    This is where the exchange becomes the intermediary to bridge the connectivity between the retail and institutional investors. Banks may act as intermediaries to acquire the retail lots that are being sold to the exchange by retail investors.

                                                     

                                                    These retail lots held by banks may then be 1) held either as stockpile to sell to other retail investors wishing to acquire retail sukuk on the secondary market through the exchange, or 2) be bunched up into lot sizes of RM5,000,000 to be sold to institutional investors through the OTC platform.

                                                     

                                                    The reverse may also happen whereby institutional sukuk holders may offer their holdings to retail investors via the exchange. The banks may again act as intermediaries by acquiring the RM5,000,000 OTC lots and breaking them down for distribution in the RM1,000 retail lots.

                                                       

                                                      How do investors trade DanaInfra Retail Sukuk?

                                                       

                                                      faq