Investment Products

BOND INVESTMENT

Bond is IOU that can be traded, issued by government or by a Company. Customers can buy and sell bonds issued by Indonesian issuers, among others :

Government Bonds

1. Are securities issued by the Indonesia government.
2. Nominal minimum transaction of Rp 100 million or USD 50,000.
3. Series of FR, VR, SPN, SPN Syariah, Sukuk, Indonesia Sovereign Bonds.

Retail Bonds

1. Are retail securities issued by the Indonesian government.
2. Nominal minimum transaction of Rp 1 million.
3. ORI, Sukuk Ritel.

Company Bonds

1. Are securities issued by Companies in Indonesia.
2. Nominal minimum transaction of Rp 1 billion or USD 100,000.

Benefits

• Investment options for customers with attractive interest rates or bond coupons compared to conventional deposits.
• Can be sold at any time according to customer needs.
• There is a possibility of obtaining capital gains if a customer sells bonds above the previous purchase price.

DEPO SWAP

Definition

Depo Swap is an investment product which utilizes the interest rate differential between two currencies. The transaction involves exchanging one currency to another and then exchanging it back to its original currency at a later date in the future based on the investment duration, in which the return received is dependent on the difference between the two exchange rates.

Benefits

• 1. Offers a higher rate of return than a regular deposit.
• 2. Principal protected – provides 100% protection on the principal amount invested.

Terms

• 1. The customer must be an existing customer of BNI dan own a foreign currency savings account at BNI
• 2. The customer must fill in a Depo Swap application form.
• 3. The customer must fill in a Depo Swap transaction request letter.
• 4. The customer must provide the necessary documents to conduct the Depo Swap transaction.

Characteristics

• 1. The nominal amount, tenor, and rate of return are agreed upon entering the transaction.
• 2. The return received by the customer is subject to tax.
• 3. The transaction cannot be terminated prior to its maturity.

Currencies

• 1. The fund invested may be denominated in foreign currencies such as: USD, SGD, JPY, AUD, EUR and other foreign currencies subject to the Treasury Division.
• 2. The minimum transaction amount is USD 50,000 or equivalent.

Risk

• 1. Credit Risk: The customer is not subject to credit risk as the funds invested remain in their account.
• 2. Liquidity Risk: The customer is subject to liquidity risk as the transaction cannot be cancelled before maturity.
• 3. Market Risk: The customer is not subject to market risk as the return on their investment is pre-specified and agreed at the beginning of the transaction.

Transaction

To conduct a Depo Swap transaction, contact a BNI marketer at the nearest BNI branch in your city.

MARKET LINKED-DUAL CURRENCY INVESTMENT (ML-DCI)

Definition

Market Linked–Dual Currency Investment (ML–DCI) is an investment product in the form of a structured product which combines a non-derivative product in the form of foreign currency savings, and a derivative in the form of an FX Option.

Objectives

1. Providing an alternative investment choice for customers.
2. Offer a higher rate of return than a regular deposit.

Characteristics

1. An investment product in which the investment returns are dependent on movements in the underlying variable.
2. The underlying variable in an ML-DCI transaction refers to movements in the exchange rate of the selected currency pair.
3. Movements in the exchange rate will determine the currency denomination of the principal amount returned to the customer at maturity.

Features

1. FX Option
2. Savings in the form of a current account or savings account

Investment Return

1. The return received by the customer on their investment comes from the option premium paid by the option buyer (i.e., BNI) to the option seller (i.e., the customer).
2. The option premium is determined by factors such as the option’s strike price, asset volatility, the price of the underlying asset, interest rate differential, tenor, and option type.

Early Termination

1. ML-DCI transactions cannot be terminated prior to the maturity date agreed upon in the transaction confirmation. If the customer terminates the transaction prior to maturity, a break fee will apply.
2. The break fee is set to 2.50% of the nominal amount or may be set by the Treasury Division upon the customer’s termination request.

Risk

1. Credit Risk which occurs when conducting back-to-back with counterparties.
2. Market risk stemming from the risk of investment and option premium.
3. Liquidity risk which occurs when the customer terminates their transaction early.

Transaction

To conduct a Depoplus transaction, contact a BNI marketer at the nearest BNI branch in your city.

DEPOPLUS

Definition

Depoplus is an investment product that combines a Deposit and Option product (Digital Option), where the rate of return on the customer’s fund is based on the movement of the underlying reference. The principal of the fund is protected, given the contract is maintained to maturity.

Product Features

1. An investment product where returns are based on the movement of the Underlying Reference (currency).
2. Provides 100% (one hundred percent) protection of the fund’s principal (Principal Protected) if the contract is maintained to maturity.
3. Provides a guaranteed minimum interest rate.
4. Interest income from Depoplus is a taxable object.

Benefits

1. Provides higher returns than a regular deposit with a flexible investment tenor.
2. The principal of the fund will be 100% protected (Principal Protected) if the contract is maintained until maturity.

Risk

1. Liquidity Risk : Depoplus cannot be cancelled before maturity. If cancellation occurs before maturity, the Bank does not guarantee a 100% return of the principal.
2. Market Risk: The maximum interest rate depends on the movement of the Underlying Reference currency.
3. Other Risk : Depoplus cannot be used as credit collateral and LPS does not include Depoplus in its guarantee program.

Transactions

To conduct a Depoplus transaction, contact a BNI marketer at the nearest BNI branch in your city.