Issuance of Bon Simpanan Merdeka 2008
Embargo :12 Feb 2008
12 Feb 2008
Bank Negara Malaysia wishes to announce the issuance of Bon Simpanan Merdeka 2008 amounting to RM2 billion on 1 April 2008. The bond, which will be scripless and based on Syariah principles, is an additional savings instrument for senior citizens who are 55 years and above and not employed on a full-time basis.
Those wishing to subscribe may apply for the bond during the sales period, commencing from 3 to 31 March 2008. The bond, which has a 3-year tenure, offers a return of 5% p.a. and provides flexibility for early redemption before the maturity date.
The minimum investment in the bond is RM1,000 with a maximum of RM50,000 per investor. Bon Simpanan Merdeka 2008 can be subscribed at all commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia. The allocation of the bond is based on first come first serve basis. Successful applicants will be notified by their agent banks. Profit payments will be made through the bondholders’ accounts with their agent banks.
For further information on Bon Simpanan Merdeka 2008, please contact Bank Negara Malaysia TELELINK at 1300 88 5465 or by visiting www.bnm.gov.my/bonmerdeka. The key features of Bon Simpanan Merdeka 2008 are as follows:
Key Features of Bon Simpanan Merdeka 2008
|
Name of bond |
• Bon Simpanan Merdeka 2008 |
|---|---|
|
Date of issuance |
• 1 April 2008 |
|
Frequency of issuance |
• One issuance in 2008 [ If there is substantial excess/unsubscribed portion another issuance in the following quarter ] |
|
Allocation of bond |
• First come first serve basis |
|
Total bond size |
• RM2 billion |
|
Bond type |
• Bond to be based on Shariah principles • Bond structure similar to coupon bond |
|
Tenure |
• 3 years |
|
Profit to investors |
• 5 % per annum |
|
Frequency of profit payment |
• Quarterly |
|
Eligibility |
• Malaysian senior citizens who are 55 years and above and not employed on a full-time basis |
|
Minimum holding |
• Minimum holding per investor is RM1,000 at the point of sale and investors may purchase the bond in a multiple of RM100 e.g. RM1,100, RM1,200, etc. |
|
Maximum holding |
• Maximum total bond holding per investor is RM50,000 at any one point of time (for duration 2008 to 2011) |
|
Early redemption |
• Bondholders may redeem bond at face value on and before maturity date, but not earlier than the first profit payment. The profit payments will be apportioned based on the number of days the bond is held • Minimum redemption amount allowed is RM100 • Bondholders may redeem their bond holdings in multiples of RM100 |
|
Sales period |
• 3 to 31 March 2008 |
|
Form of instrument |
• Scripless |
|
Agent banks |
• Commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia |
|
Tax exemption |
• Returns on the bond to be exempted from tax |
|
Transferability and assignability |
• The bond is non-negotiable, non-transferable and non-assignable
|
Bank Negara Malaysia
12 February 2008
© Bank Negara Malaysia, 2008. All rights reserved.
