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

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.

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

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

• Securities Commission Malaysia - www.sc.com.my
• Bursa Malaysia - www.bursamalaysia.com

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

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

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

Kindly refer to the Knowledge Pack for more information on the salient terms of DanaInfra Retail Sukuk.

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.

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.

A total of RM500 million of DanaInfra Retail Sukuk has been issued as at September 2024.

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

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

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.

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.

The transaction cost in the secondary market is 0.33% of the trade value.

The retail investors shall bear their respective transaction cost.

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.

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.

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

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

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.

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.

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.

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.

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 Central Depository System (“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.

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.

The coupon / profit payment is paid to holders of DanaInfra Retail Sukuk on semi annual basis.

The next coupon / profit payment is due on 30 April 2024. Kindly refer to Bursa Malaysia’s announcement for further information at https://www.bursamalaysia.com/market_information/announcements

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.

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.

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.

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.

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.