any comments on this new sukuk??? what say u guys???

is it worth to buy ????

------------------------------------------------------------------------


This Offer is currently open for subscription through Maybank2u. You can apply for the DanaInfra Retail Sukuk and check your application status conveniently online, wherever you are.

Sukuk Issue Number : 537
Sukuk Name : DanaInfra Retail Sukuk
Opening Date : 8 January 2013
Closing Date : 18 January 2013
Unit Price : RM100.00
More information on DanaInfra Retail Sukuk is available through its knowledge pack and at www.danainfra.com.my as well as www.bursamalaysia.com/etbs.

Cant find the profit rate......anyone spotted? I see sample calculation 3.74%....dam little from my public mutual bond fund.

below the link: DanaInfra Profit rate
http://biz.thestar.com.my/news/story.asp?f...5&if_height=663

This post has been edited by felixmask: Jan 8 2013, 10:55 AM


Attached File(s)
 DanaInfra_Retail_SukukKnowledgePack.pdf ( 1.96mb ) Number of downloads: 196
 DanaInfra_Retail_Sukok_Terms_Conditions.pdf ( 103.34k ) Number of downloads: 126

Not interested....

http://www.bursamalaysia.com/market/securi...and-sukuk-etbs/

This post has been edited by zitis: Jan 8 2013, 10:48 AM

It is a sukuk (or islamic bond), so it is about how much the yield it can be.
It is not a ordinary stock with dividend.


The rate is not attractive, that at 3.x% little different with FD. My pov at current situation.

Unless the sukuk bond price goes down (which highly unlikely for current situation), that make the yield higher, only then it is attractive.

This post has been edited by cherroy: Jan 8 2013, 11:08 AM

Updated: from dividen to profit rate for correct Terminology

Dam little, must wait and see got other yield more then this one

At the moment,
bond is highly after worldwide (that's why we see bond funds generally have good performance across last few years), aka bonds are having good time across the global, there is high demand for bond, so for high quality bond or Sukuk, generally we won't see very high yield across.

their main selling point is their guarantor?

Section 2

2.2  Profit Payment is guaranteed by the GoM

No harm to use it as temporary parking tool, right

Worst case is 3% return than 30% deprecation throughout ....

If u foresee market is going to crash anytime

Wise man says it is better to predict a small return than expecting a higher gain ( but often turning out to be the big loss )

BTW, We also need tools working the opposite directions of share markets, not just returns per se.

Just 3sen talking only

This post has been edited by SKY 1809: Jan 8 2013, 12:01 PM

Expected interest of 3.74p.a is not so attractive, just little above the FD rate.

Also need to apply through ATM/eshares just like applying IPO & trading just like normal shares on bursa malaysia.

If a person have CDS & Trading account, they can just buy shares / IPO that offers higher dividend yield then buying this Sukuk Dana Infra Nasional.

just my personal opinion

invest in your own risk & final decision is yours

This post has been edited by davinz18: Jan 8 2013, 04:10 PM

This parking might be one way one... at 3.74% that's hardly attractive... Maybe can buy at open market with cheaper price later

Anyhow is comfirm 3.74 profit rate? or hv to wait till closing?

Haha... everyone say so, but don't even see the prospectus leh... But 3.74% hardly inspiring for a search

I read prspectus cant find the profit rate, only find in sample calculation and thestar.

Got stated:
How will the Profit Rate be determined?
The Profit Rate will be determined at the close of the book building of the institutional offering.
It will be determined and the prevailing market interest rate.



No one know until.......the closing date...

Wait and see tmorw news ....

3.74% is much better than German Bonds, don't u think so

But not so attractive when u compare that to Greece one.

Maybe u can sell for a 1.5% gain in the open market also....

got fee selling back: 0.33% of trade value;
Quote form prospetus:

How much is the transaction cost to buy and sell DanaInfra Retail Sukuk?
There will be no fee at the point of subscription. However, the
transaction cost in the secondary market is 0.33% of the trade value.

This post has been edited by felixmask: Jan 8 2013, 05:06 PM

wow, so high.

Good for the bankers, and bad for retailers

Another money making tool for the bankers/brokers

This post has been edited by SKY 1809: Jan 8 2013, 05:18 PM

About 30bps higher than 10y MGS and 25bps higher than 10y GII. the pricing is very "institutional" so i don't see why it should call retail bond.

If secondary trading is subject to "secondary market is 0.33% of the trade value", i don't think it will inspire a vibrant retial bond market in malaysia.....

Saw they promoting the advertisement on the MRT construction site at Jalan Bukit Bintang. A too good to be true offer?

guys,
The fees involved will be as per normal brokerage charges.
and, minimum return is 3.74%p.a. and after book building will announce the return, is either equal or higher.
The only chance for those hoping for 1.5% capital during listing is only possible when BNM announce OPR to reduce substantially.
Please be informed that in increasing interest market environment, if you sell your danainfra prior to maturity, very likely you will experience capital loss.

3.x% ~ 4.x% pa rate for a medium to long term tenure, so how can it be said a too good to be true?

Buy bonds only when market is down not at all time high.

Rate: minimum 3.7%
Payment: semi-annually
Period: 10 years bond
Unit price: 100
Risk: price is inversely proportion with BLR.
Transaction cost when selling: 0.33% of the principal
Bond guarantor: goverment of Malaysia
Targeted investor: conservative investment

It is a public listed bond so transaction cost should be according to the brokerage firm, right? Furthermore if it is listed, another factor would be the appreciation/depreciation of bond value.
10 years MGS maybe 3.4-3.5% now.
Let say the final rate 3.8 or 3.9% still i can't see reasonable investment value for normal investors (It can't be appreciating bond value until lower yield than MGS and FD. Else retail investor may change to FD?). There are much more better investment choices rather keeping a low yield bond. Put in FD would have lower yield but no transaction cost and market price risk.
So i think "Targeted investor": Insurance funds, unit trust,... which have constraint in buying high quality bond.

This post has been edited by H86: Jan 13 2013, 03:16 PM

well.. that is a transaction cost of 0.33% + brokerage charges when selling.

bond price won't fluctuate much as those equities. For Malaysia, i think BLR will revise lower at this 4th quarter of 2013 to boost domestic expenditure.

The diff between etb & FD is u can receive your bond yield for every 6 months where FD only have to wait until maturity date.

there will be another allocation for corporate or funds, if not mistaken only 300mil is open for retailer. Minimum institutional subcripte is 5,000,000 per contact, for retailer is only 1000.

not much with this.
better buy Maybank or CIMB shares.

Sime coming up with another sukuk for the public.


Well the more the merrier, Looks like in the future we got more finanacial instrument to place our hard earned money and banks will have to offer more to attract FD deposits. Good news all around.

This post has been edited by alenac: Jan 14 2013, 11:33 AM

I am not interested at all. Just cuious who want to apply ?

I am in

The transaction fees mostly will EAT into your profits.

End of day break even.

masuk asb lagi bagus..

Setuju... Bonus tahun lepas menarik giler $$$$$$ >.< .. Tahniah kepada semua penyimpan asb!

Should be under-subcribed!!!

Sukuk offer period extended

KUALA LUMPUR: DanaInfra Nasional Bhd, a wholly owned subsidiary of Minister of Finance, Inc, will extend the offer period for its maiden retail sukuk to another week.

The retail sukuk was launched on Jan 8 in what was considered the country's first new asset class in the exchange meant for retail investors. The offer period was opened for 11 days from Jan 8 to yesterday.

However, it will now be extended to another week to give retail investors the opportunity to invest in this new instrument.

The indicative profit rate, which was previously announced at a minimum of 3.7% per annum, has now been fixed at 4% per annum.

The investment offers pre-determined returns in the form of coupons, which are paid out over regular intervals. Investors need only a minimum of RM1,000 as capital to start investing at the initial public offering stage.

This debut issuance will be used to partly fund the MRT project, giving investors the opportunity to diversify their investment portfolio by investing in the nation's key transport infrastructure with the security of a government guarantee with Syariah-compliant returns to boot.

DanaInfra chairman Datuk Mat Noor Nawi said DanaInfra was formed to ensure and facilitate the funding of large infrastructure projects undertaken by the government for the benefit of the general public.

“Our role is one which comes with great responsibility and we are committed to undertake our role with utmost integrity.

“We are proud to be given the privilege to become the first issuer and be able to provide the public the opportunity to share in the growth and wealth of the nation with the launch of the country's debut DanaInfra retail sukuk,” he said in a statement yesterday.

The RM300mil retail sukuk is part of the second series of sukuk being issued this month for a total of RM1.5bil, with RM1.2bil slated for institutional over-the-counter trading for 10-year papers.


http://biz.thestar.com.my/news/story.asp?f...10&sec=business

cant beat EPF dividend
http://www.theedgemalaysia.com/business-ne...the-cards-.html
Wait for ah jib extend more.

trying to attract retail investor with the 4% p.a

I think the subscription is low, so extended 1 more week

good try

It is not about extension, it is about its yield.

FD rate now is 3.x% for 1 year, as retailer why one want to opt a sukuk/bond that yield is almost the same with FD?
(bare in mind buy/sell need to incur commission charges which can be range from 0.1*% ~ 0.42%, I assumed it may be traded like ordinary stocks and incurred the same commission if one incurred 0.4% at 3.7%, net yield is only 3.3%)
(If incurred both way buy & sell, then 0.4% x 2, like that lower than FD, it doesn't make sense for retailers already)

It needs to provide better yield like at least around 1% higher than any FD can be offered out there.

this counter is more towards institutional.
if want better yield, MBSB offering FD 4.75%*.

increase the yield.

way too low, better buy HL Bank shares.

DanaInfra to issue second retail sukuk of RM100mil

DanaInfra Nasional Bhd would be offering its second issuance of DanaInfra Retail Sukuk or Exchange Traded Bonds and Sukuk (ETBS).

In a statement on Friday, DanaInfra said the retail sukuk would be offered with a nominal value of up to RM100mil and a tenure of 15 years with minimum indicative profit rate of 4.5%.

“However, the actual profit rate is to be announced on the opening date which is scheduled on Oct 24.

“The offer will be opened until Nov 15 while listing and commencement of trading is expected to be on Nov 28,” it said.

It added the latest issuance is part of DanaInfra’s third series IMTN programme to finance the Mass Rapid Transit Project Sungai Buloh-Kajang line.

The DanaInfra Retail Sukuk was first launched in early January this year as Malaysia’s first sukuk offered to the retail investors.

Get redy $ to apply this IPO

You interested?

Yup

The first tranche already trading on bursa malaysia. You can check it out

I applied n sold @ profits

Oh Really? Good for you

I didn't apply it, not interested

Oic...

How much you sell at? and how long it takes you to get the profit?

Forgotten
If can recall, sold @ closed to 102.00 within 1 mth from listing

New IPO out today
Closing on 15/11/2013

http://www.mih.com.my/index.php?page=ongoing

not yet available on maybank2u

Profit Rate: 4.58% per annum

RM100 per unit?

yes, min 10 units which is RM1000

Where 2 find it ? Under what name ? nvm, found it...below RM1.00 - damn 98.5 cents only. S does it mean current IPO gone casE ?

Dude, that's RM98.50, not 98.50 cents !

Availaible from CIMB eipo as well.

Stock code is 0400GA

rm100/unit means rm100000?

Nope
RM100 per unit
Need to buy min 10 units = RM1,000
After tat, multiple of RM1,000

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 ?

Refer to this link

http://www.bursamalaysia.com/market/listed...cements/1195285

http://www.mih.com.my/index.php?page=press

You need to take in transaction cost, if buy and sell incurred 0.4% (as same with trading share), means 0.8% gone.
4.58% - 0.8% means 3.78% only.

There is no reason to invest into a 3.78% bond when FD also can get this rate.

There is little upside for bond except if interest going down.
Bond is not as same as equities.
When mature, it returns you the face value only.
So bond final worth is fixed already, whether the price can go up or not depended on interest rate difference between FD and bond.

You can't treat a bond as same as equities aka hope the price of bond can fly as equities when IPO listing time.

In my opinion, if die die must buy, choose a good return reit is better than this Bond, 6 - 7% is norm.

thank you so much for this information. it save me some research time....

There is no transaction cost if U buy thr' IPO and U hold for 15 years as on maturity U get back full principal invested.......means U get full 4.58% yrly rate.

If U buy from market and sell B4 maturity, say U buy at RM10,000 for 100 lots (1 lot = RM100) and sell after 6 years also at same rate f RM100 per lot.

Buy cost - RM6 brokerage (if U R using AmeSecurities) + $0 (Stamp duty is exempted) + RM3 (clearing fee - 0.03%) = RM9 which is 9/10000= 0.09%. Means for your 1st year, U earn 4.58% - 0.09% = 4.49%.

For year 2-5, U earn full 4.58% interest.

Sell at end of year 6 after u have received the 2 semi-annual interest. Sell cost. also same = 0.09%
U earn 4.58% - 0.09% = 4.49%.

If U average the 6 years interest = 4.49% x 2 + 4.58 x 4 = 4.55% yearly interest.

1) Bond is guaranteed by the Malaysian government, not so for REIT.
2) Bond rate is fixed, so U do not need to waste your time monitoring unlike REITs which can have wild swings in the dividend payouts, causing U to reshuffle your REIT portfolio.

Diversify yo investments ma...

Very gud analysis n simulation

Do we need to declare the interests we earned ? Is it taxable ?

Nope
Is tax free

Yet another advantage of investing in this bond. Dividend on shares sometimes tax at source and U then need to claim back the over-payment - meaning U still need to pay at your current tax bracket, right ? Any idea what would be the tax bracket for someone earning RM5,000 per mth ?

This post has been edited by topearn: Oct 25 2013, 03:16 PM

U r rite
No idea on RM5k per mth. It depends on deductions as well