Product Overview
Name and Product Type
Forward Linked Trade (FLT) is an investment product that combines time deposit and foreign exchange swap, FLT may be tailored to suit the needs.
Name of Issuer
PT Bank DBS Indonesia
Product Characteristics
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The returns are at fixed interest rates.
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The return will be delivered at the end of the period.
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FLT tenor varies from 1 (one) month until 1 (one) year.
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Available only in foreign currencies, among others AUD, SGD, CNH.
Benefits
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100% principal protected if FLT held until maturity.
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Customer has opportunity for greater return on investment compared to time deposit interest rates in general.
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Alternative investment in foreign currency for Customer.
Main Risks
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FLT is a form of Structured Product that carries risks not normally associated with ordinary bank deposits. The Customer should therefore not treat this product as a substitute for ordinary savings or time deposits
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FLT is meant to be held to maturity. There might be loss occurs when Customer redeem the investment before maturity date (depends on valuation from bank on early redemption date), and the Bank shall be entitled to deduct any losses that might be incurred from the redemption, as FLT is not a negotiable or transferable instrument.
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FLT may not be suitable for the Customer who are not familiar with the exchange rate of the relevant currencies or the factors that affect movements in such exchange rate. The exchange rate of the relevant currencies will be influenced by the complex and interrelated global and regional political, economic, financial, and other factors that can affect the currency markets on which each of the currencies is traded.
Requirements & Procedures
Some requirements to be fulfilled by Customer to subscribe FLT:
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Customer must have account in PT Bank DBS Indonesia.
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Customer must complete risk profile and ensure risk profile suitability with the product.
Fees
Transaction fees include Stamp Duty in accordance with the prevailing regulations.
Simulation
Assumption
| Principal Amount | AUD100.000,00 |
| Currency Pair | AUD/USD; |
| Payout rate | 0.20% per annum |
| The actual number of saving days | 182 |
| Days Fraction for AUD saving days | 365 |
Scenario 1 (Best Scenario)
The Customer shall receive on the Maturity Date, an aggregate sum of the Final Redemption Amount and Payout Amount for total AUD 100,079.78 (net)
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Payout Amount = Principal Amount x Payout Rate x Day Count Fraction = AUD 100,000.00*0.20%*(182/365) = AUD 99.73 gross = AUD 79.78 net
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Final Redemption Amount = AUD 100,000.00
Scenario 2 (Worst Scenario)
If the Customer requests an early withdrawal of the FLT in accordance with the early withdrawal requirements and the Bank agrees to the Customer's request, the Customer will receive an early withdrawal amount determined by the Bank. Such early withdrawal amount will usually be substantially less than 100% of the Principal Amount and in the worst-case scenario, such early withdrawal amount is zero. The Customer will not receive any subsequent pay-out following such early withdrawal.
IMPORTANT
Dates, rates mentioned and all calculation above are for illustration only. Those information and numbers are not the representative of the actual performance or future performance of this product.
Additional Information
