BONDS / SUKUK
Grow your wealth and diversify your portfolio with bonds/sukuk
We offer you a choice between local and foreign currency bonds/sukuk to earn regular coupon payments.
Bonds/Sukuk Investment
Sukuk are the Shariah-compliant version of conventional bonds. Unlike conventional bonds through which investors earn interest, sukuk holders gain partial ownership on an issuer's assets until the sukuk maturity date.
We offer you a choice between local and foreign currency bonds/sukuk to earn regular coupon payments. You will also receive the face value amount of your bonds/sukuk investment at the end of the investment period, provided there is no default by the issuer of its repayment obligations or the issuer is insolvent.
Coupon
A coupon is the amount of interest paid to bond/sukuk holders. In general, this is paid out annually, quarterly or semi-annually.
A coupon is the amount of interest paid to bond/sukuk holders. In general, this is paid out annually, quarterly or semi-annually.
Bond/Sukuk rating
This measures the investment grade of the bond/sukuk. However, ratings are not buy or sell recommendations, nor are they substitutes for an independent investment analysis. Instead, they are opinions about the capacity and willingness of an issuer to meet its financial obligations in full and on time.
This measures the investment grade of the bond/sukuk. However, ratings are not buy or sell recommendations, nor are they substitutes for an independent investment analysis. Instead, they are opinions about the capacity and willingness of an issuer to meet its financial obligations in full and on time.
"Clean price" versus "Dirty price"
"Clean price" is the price of a bond/sukuk that excludes any accrued interest since issue or the most recent coupon payment, while "Dirty price" is the price of a bond/sukuk including the accrued interest.
"Clean price" is the price of a bond/sukuk that excludes any accrued interest since issue or the most recent coupon payment, while "Dirty price" is the price of a bond/sukuk including the accrued interest.
"Callable" bond/sukuk
"Callable" bond/sukuk means that the issuer is able to redeem the bond before the maturity date at a price that is either fixed or based on a formula set out in the terms when the bond/sukuk was issued. The "call price" is generally a small premium over the bond's/sukuk's nominal value.
"Callable" bond/sukuk means that the issuer is able to redeem the bond before the maturity date at a price that is either fixed or based on a formula set out in the terms when the bond/sukuk was issued. The "call price" is generally a small premium over the bond's/sukuk's nominal value.
"Conversion" bond/sukuk
A "conversion" bond/sukuk enables investors to convert the bond/sukuk into another security, typically an ordinary share, within a specified time period. The number of shares investors will get depend on the "conversion price" as determined in the terms of the bond/sukuk.
A "conversion" bond/sukuk enables investors to convert the bond/sukuk into another security, typically an ordinary share, within a specified time period. The number of shares investors will get depend on the "conversion price" as determined in the terms of the bond/sukuk.
Yield to Maturity (YTM)
YTM measures the return on a bond/sukuk is if it is held to maturity and all coupons are reinvested at the yield to maturity rate.
YTM measures the return on a bond/sukuk is if it is held to maturity and all coupons are reinvested at the yield to maturity rate.
Credit risks
Your bond/sukuk investment may be at risk if the issuer is unable to make payment or goes into default.
Your bond/sukuk investment may be at risk if the issuer is unable to make payment or goes into default.
Interest rate
A rise in interest rate will cause bond/sukuk prices to fall.
A rise in interest rate will cause bond/sukuk prices to fall.
Face value
A face value amount will only be repaid if your bond/sukuk investment is held to maturity; otherwise, there may be a partial loss to the face value amount.
A face value amount will only be repaid if your bond/sukuk investment is held to maturity; otherwise, there may be a partial loss to the face value amount.
High risk
Investors who are willing to take a certain amount of risk for potentially higher returns.
Investors who are willing to take a certain amount of risk for potentially higher returns.
Medium to long term
Investors who plan to have medium to long term investments with a certain amount of risk for potentially higher returns.
Investors who plan to have medium to long term investments with a certain amount of risk for potentially higher returns.
Periodic payouts
Investors who prefer to receive regular coupon payments throughout investment period.
Investors who prefer to receive regular coupon payments throughout investment period.
WARNING
Important notice: The holder of the bonds/sukuk is assuming the credit risk of the issuer of the bonds/sukuk. In the event of winding-up or liquidation of the issuer of the bonds/sukuk or if selling the bonds/sukuk prior to maturity, you may not get back the face value or nominal amount of the bonds/sukuk.
For bonds/sukuk, issuers and distributors are required to provide investors with a prospectus, or any relevant documents and would also need to meet with the relevant continuous disclosure requirements. You can access information on bonds/sukuk that you have invested in through Bursa Malaysia's website or Bond Information Exchange of Securities Commission and OCBC Bank (Malaysia) Berhad or OCBC Al-Amin Bank Berhad from whom you have purchased the bonds/sukuk.
The information in this website has not been reviewed by the Securities Commission Malaysia.
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