Product Overview
Name and Product Type
Premium Currency Investment Two Way Performance (PCI TWP) is an investment product that combines time deposit and foreign exchange Option. PCI TWP may be tailored to suit the needs.
Name of Issuer
PT Bank DBS Indonesia
Product Characteristics
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The return of investment to the Customer would be in the form of minimum rate or maximum rate.
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Maximum rate determined on the Fixing Date at 13.00 WIB.
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The minimum rate is fixed and determined on the Trade Date.
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The return will be delivered on the Maturity Date.
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PCI TWP tenor varies until maximum 1 (one) year.
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Available only in foreign currencies, among others EUR, GBP, AUD, NZD, USD.
Benefits
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100% principal protected if PCI TWP 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.
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The Customer may earn enhance yield based on the Customer’s view that foreign currency movement will not exceed certain barriers during observation period.
Main Risks
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PCI TWP 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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PCI TWP 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 PCI TWP is not a negotiable or transferable instrument.
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Customers are subject to the risk of foreign exchange fluctuations that may affect the return of the investment. The return of PCI TWP depends on the foreign exchange movements, where the movements must be within the range of the pre-determined barriers (Upper and Lower Barriers). If the barriers are breached during observation period, Customer will receive minimum return that might be lower than time deposit rate.
Requirements & Procedures
Some requirements to be fulfilled by Customer to subscribe PCI TWP:
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Customer must have account in PT Bank DBS Indonesia.
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Customer must complete risk profile and make sure the product purchased suitable with Customer's risk profile.
Fees
Transaction fees include Stamp Duty in accordance with the prevailing regulations.
Simulation
Assumption
| Tenor | 184 days (6 month) |
| Currency & Transaction Amount | USD 100,000 |
| Currency Pair | AUD/USD |
| Participation Ratio | 100% |
| Minimum Payout Rate | 0.15% gross per annum |
| Spot Rate | 0,7595 |
| Bullish Strike Rate | 0,7645 |
| Upper Barrier | 0,7795 |
| Bearish Strike Rate | 0,7545 |
| Lower Barrier | 0.7395 |
Scenario 1 (Best Scenario)
Spot Rate AUD/USD ever touch/over Upper Barrier but never touch/over Lower Barrier during Observation Period, and the Customer returns will depend on Spot Rate on Fixing Date at 13.00 West Indonesian Time.
Calculation:
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Spot Rate assumption on Fixing Date at 1 PM Jakarta Time: 0.7396 (Spot Rate AUD/USD in between Bearish Strike Rate and Lower Barrier)
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Payout Rate = Minimum Payout Rate + Bullish Performance Calculation (in %) + Bearish Performance Calculation (in %)
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Payout Rate = 0.15% + 0 + (100 × (0.7545 – 0.7396) × 2) = 3.13% gross per annum
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The Customer will get Principal Amount + Maximum Payout Rate on Maturity Date
USD100,000 + (USD100,000 × 3.13% × 184)/365 = USD 101,577.86 gross or USD 101,262.29 net
Scenario 2 (Normal Scenario)
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Spot Rate ever touch/over Upper Barrier and Lower Barrier on Observation Period, or
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Spot Rate never touch/over Upper Barrier and Lower Barrier on Observation Period, but touch/in between Bullish and Bearish Strike Rate on Fixing Date at 13.00 West Indonesian Time
Calculation:
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Payout Rate = Minimum Payout Rate + Bullish Performance Calculation (in %) + Bearish Performance Calculation (in %)
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Payout Rate = 0.15% + 0 + 0 = 0.15% gross per annum
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The Customer will get Principal amount + Maximum Payout Rate on Maturity Date
USD100,000 + (USD100,000 × 0.15% × 184)/365 = USD 100,075.61 gross or USD 100,060.49 net
Scenario 3 (Worst Scenario)
If the Customer requests for an early withdrawal of the PCI TWP 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
