thanks!
sukuk is new to me... is also share?
so far other than the AAX, all ipo failed...i try to go for all ipo... n this "sukuk" is a buy/no buy for u?

Sukuk is not shares
Dis is a loan instrument
Will apply next month

good to hear that.
how to sell after that? same as share? or there is loan duration, must bond the the end?

Similar to buy n sell shares
15 years sukuk
If still hold sukuk end of 15 yrs, Danainfra will redeem @ face value

if you all want to lose money feel free to apply, it is always best to do you own research instead of following noises.

this is a capital market instrument broken down to retail investors, as a lot of posters had pointed out you will lose out on transaction cost. the cost is lesser for high net worth products if you really want to go into fixed income investment.

understand that for fixed income investment the value is negatively correlated to the movement in interest rate. if interest rate goes up than the value of your investment will go down. if your familiar with the interest rate regime you would understand that so far we have had an easing period. however due to that it has created a bubble that the government is now trying to control in the upcoming budget.

thirdly the longer the duration the higher the price impact. meaning a short dated bond will move less compare to a long dated bond for the same movement in interest rate. this is important because the issuer is issuing long dated bonds.

i don't really want to comment too much but don't simply invest just because donkeys make it seem so easy, some time people brag just to make it seem they know everything. do your own research and understand the investment is always the first rule, otherwise you can be a donkey for life.

http://www.danainfra.com.my/images/stories...nd_issuance.pdf

4.58%

This post has been edited by mopster: Oct 24 2013, 10:34 PM

Pl be careful of the words U use as U R saying those who comment positively about this issue are donkeys.

Without thinking too much about this, I would say earning 4.58% interest yearly for 15 years is a pretty good offer, some more it's guaranteed by the Malaysian government taking into account FD rates since 1999 (15 years ago) has been way below 4.58%. As a sweatener, it is also listed meaning U can also hope to enjoy capital gains if the bond rise above the listed rate and U want to make tax-free capital gains profit by selling the bond.

This post has been edited by topearn: Oct 24 2013, 11:16 PM

one man poison is another man meat, i don't want to enter into long debates but I will just highlight why it is a bad investment

1) post listing you will not make a capital gain off the investment, the budget announcement is this Friday and they will put in place measures to control the bubble. this measures will tighten credit supply and increase cost of funding

2) 4.58% is nothing against "real" inflation figures, Malaysia CPI is commonly known to be rigged due to controlled subsidies and the way the basket is calculated. Actual food prices have been increase far above reported inflation numbers.

3) after transaction cost your buying at a premium, the guarantee only covers principal and will not compensate any premium over 100.

4) FD rates can be taken out without affecting your principal and 1 year cash rate can give you close to 3.5 - 3.6%. In fact you can even negotiate a higher rate if you have the cash. Why bother taking a risk of 15 years for that extra 1%?

If you can counter logical answers to my questions I will call myself a donkey.

instruments like the above are only good for pension funds where they have too much money and need to invest above FD rate.

they dont mind buying it because their cost of product is below the investment return. so this really speak volume about why most insurance products are overpriced.

1) don't quite get your drift, so no comments.
2) We are not comparing this long term bond against inflation but against historical FDs, and 4.58% is way higher than past 15 years FD rates. Those who are keeping thier money in FDs are thus better of to buy this bond.
3) This is IPO and thus no buying cost.
4) 1% extra is a huge amount. 1%/3.5% = 28.5%, meaning U're earning 28.5% more.

your argument has no substance and a lot of flaws, i suggest you check the facts before replying next time. anyway im not going to spend my time ranting i've said my piece so good luck if your investing

if i'm not wrong when they distribute the dividend (can't remember the islamic term) , the sukuk price will drop and then slowly slowly rise back again. volume traded in the KLSE is quite low for this. they distributed the dividend twice yearly.

i will skip this one.. really not for me.. this one suitable for auntie and uncle who dont want to take risk and just put their monies in FD.

I dun agree with u at all
1st u can't call Ppl donkey when they invest in dis instrument
U oredi mentioned 'one man poison is another man meat'
Think 1st b4 u write

wil-i-am - U have subscribe to the 1st batch of this IPO - do U have to pay fees ? e.e. U buy 10 units costing RM1000 - do U pay RM1000 or RM1000 plus some fees like stamp duty, etc ?

There is no fee when apply this sukuk except RM1 for Maybank, stamp duty is exempted when u selling this sukuk.

This post has been edited by kailc: Oct 25 2013, 10:03 AM

If we sell say 10 lots PJDEV costing RM1,150 we need to pay brokerage + RM2 stamping + 0.03% clearing fee. Let's say this sukuk rise to RM1,150 per 10 units and when we sell, we need only pay brokerage and clearing fee - no need to pay the RM2 stamping ?

Stamp duty exempted, no need to pay

Amount : Up to RM100,000,000.00
Nominal Value Tenure : 15 years
Profit rate : 4.58% per annum
Opening date for Danainfra Retail Sukuk offering : 24 October 2013
Closing date for Danainfra Retail Sukuk offering :15 November 2013
Listing and commencement of trading : 28 November 2013

Got some queries -
1) Any balloting for this ?
2) If no balloting, do U get the bond the next working and interest start from that day ?
3) What happens if more than RM100m applicants, the offer will stop and those who apply after RM100m will get refunded ?