Product Overview

Name and Product Type
Interest Rate Linked Investment (IRLI) is an investment product which the performance is linked to reference interest rate movement so that Customer have the opportunity to get attractive returns.

Name of Issuer
PT Bank DBS Indonesia

Product Characteristics

The yield can be in the form of a fixed rate that always increases from year to year (Fixed Rate Step Up).
The yield can also be in the form of a floating interest rate which can vary according to the reference interest rate (Floating Rate).
The yield is in the form of coupons which are paid periodically on certain dates.
The placement tenor is 1-5 years.
Available in USD and IDR.
IRLI has a callable feature, where The Bank may (but is not obliged to), at its sole discretion, redeem the IRLI at the Early Redemption Amount on the Early Redemption Date.

Benefits

100% Principal Protected if IRLI is held until Maturity Date.
Customers have the opportunity to get higher returns compared to traditional deposits.
Customers have the potential to get fixed and increasing coupons every year.
Customers have the potential to continue earning high and fixed yield in a condition where the reference interest rate is in a downward trend.

Main Risks

IRLI is a form of Structured Product that carries risks not normally associated with ordinary bank deposits. The Customer should therefore not treat IRLI as a substitute for ordinary savings or time deposits.
IRLI 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 IRLI is not a transferable or negotiable instrument.
The Bank may, at its sole discretion, (but is not obliged to) redeem the IRLI at the Early Redemption Amount on the Early Redemption Date. If IRLI is redeem by the Bank on Early Redemption Date and the Customer reinvest the notional Principal Amount, the yield on the reinvest IRLI may be substantially less than the yield that the Customer receive from this IRLI.

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Investment Outlook: 4Q-2022

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