Information on Bonds and / or Sukuk at least includes:
- The value of bonds that have not been paid off / outstanding / or sukuk: USD 500,000,000
- Results of rating of funds / or sukuk bonds:
- Moody’s: Baa3
- S & P: BB
- Fitch: BBB-
- Due date: April 27, 2017
- Bond interest rates and / or sukuk yields: 4.125%
BNI Emerald provides brokerage services for bond transactions as a form of our commitment to providing the best products and services for you. Supported by professional and experienced staff in their fields, you will benefit from:
- Opportunities to routinely obtain information on bond products available on the market as your investment choice.
- Advice and assistance on bond investment options that suit your needs.
- Competitive brokerage fees so that your profits will be more optimal.
We will always help in maintaining your portfolio, so that it is always in the corridor of your financial goals. Bond:
Bonds are medium-long debt securities that can be traded, where the bonds contain promises from the issuing party to pay compensation in the form of interest (coupons) in a certain period and pay off the debt principal at a specified time to the buyer of the bond. By investing in bonds, it means that you invest into one of the fixed income securities that aims to provide a relatively stable level of investment value growth.
Types of Bonds provided:
- Government Bonds
To meet customer needs for safe fixed income products with a period that is tailored to the investment objectives, the customer has investment options in the form of Sovereign Debt Instruments, namely bonds issued by the Government of Indonesia. The government issues FR series bonds, namely bonds with fixed coupons, VR series bonds, namely variable coupons and State Sukuk.
- Corporate Bonds
Is a choice of bonds in the form of bonds issued by Indonesian corporations both state-owned and other corporations. In order to maintain the controlled risk of the choice of corporate bonds, we limit it to a minimum rating determination.
- Retail Bonds
For those of you who prioritize security in investing, Retail Bonds are the most appropriate choice for you. Retail Bonds issued by the Government consist of ORI and Retail Sukuk, namely Government Bonds sold to individuals or Indonesian Citizens through a selling agent.
Benefits of investing in bonds:
- Investment alternatives that have relatively higher yield rates than deposits in general.
- Potential for capital gains.
- Get periodic coupons and principal repayments at the end of the bonds’ age.
Procedure for Purchasing Bonds:
- Become a BNI customer
- Customers fill out & sign the forms required at the selected BNI Branch Office by attaching a photocopy of the valid ID card.
- Customers deposit / transfer purchase funds
Risk of investing in bonds:
- Credit risk / default risk That is the risk of the inability of the Bond Issuer to pay interest and / or principal bonds.
- Liquidity risk Is the risk of illiquid bonds on the secondary market
- Interest rate risk That is the risk of interest rate movements that can affect the price of bonds on the secondary market
- Foreign exchange risk That is the risk of changes in exchange rates, especially for bonds issued in foreign currencies.
- Investment in bond products carries risks including the risk of decreasing price and risk of achievement by issuers in making payment of principal and interest on bonds. The risk is fully borne by the customer and BNI is free from any responsibility and obligation for the occurrence of those risks.
Bond prices are strongly influenced by the level of demand and supply that occurs in the market. Bond prices are expressed as follows:
That is, the price of the Bond is above the par value (> 100%)
That is, the bond price is equal to par value (= 100%)
Namely bond prices are below par value (<100%)
One way to assess the price of a bond on the market is to measure Yield to Maturity (YTM) or yield to maturity using the following formula:
If “X” Bonds with a nominal value of IDR 1,000,000,000, and a coupon rate of 12% for a period of 5 (five) years is purchased at a price of 102%. Then the nominal value of money that must be provided by the buyer is 102% x Rp. 1,000,000,000, – or Rp. 1,020,000,000.