Bonds

Government Securities (Bonds)
Get the convenience and comfort of investing in Bonds with maximum yields.

Bonds are securities containing a statement of debt from the issuer along with a promise to repay the principal debt of the company at a predetermined time.

SERVICE TYPE
Bank Commonwealth provides transaction services for the purchase, resale and redemption of bond products issued by the Indonesian Government, in the primary and secondary markets, with wide selection of bonds series of various denomination such as Rupiah (IDR), US Dollar (USD) and Euro (EUR). These Government Bond transactions can be done through Bank Commonwealth branches or through CommBank SmartWealth.

BONDS TYPE OPTION
• Bonds in Rupiah (Rp)
• Bonds in US Dollar (USD) currency
• Bonds in Euro (EUR) currency
• Retail Bonds in the Primary Market (ORI, SR, SBR & ST)

ADVANTAGES OF BOND

• Safe
  
  Principal and Coupons are guaranteed by the Government through law.

• Competitive Coupon Rates
  
  The yield/coupon offered is higher than the average Deposit Interest rate.

• Regular Coupon Payment
  
  Payment of yields/coupons periodically until product maturity.

• Potential Capital Gain
  
  Has the potential to obtain capital gains from bond price movements.

• Light Tax
  
  The tax charged is lower compared to Deposits.

• Liquid
  
  Can be traded in the secondary market until the product matures

ADVANTAGES OF BOND TRANSACTIONS THROUGH BANK COMMONWEALTH

• Easy
  
  Online transaction, anywhere through the CommBank SmartWealth application.

• Affordable
  
  Starting from IDR1,000,000 (one million Rupiah), you can invest in Retail Bonds through the Primary Market and IDR10,000,000 (ten million Rupiah) for Bonds through the Secondary Market.

• Free Transaction Fee
  
  Free sale and purchase transaction fees for all Bond series offered by Bank Commonwealth .

• Free Storage
  
  Free storage (custodian fee) for the first year.

• Flexible Transaction Time
  
  Bond transactions can be carried out every trading day until 14.30 WIB.

• Integrated Administrative Reports
  
  The customer will receive proof of transaction confirmation and a monthly report from the Custodian Bank. Customers can also request proof of withholding taxes on capital gains and bond coupons (upon request).

BOND RISK

• CREDIT RISK
  
  Investment in Products contains credit risk from the Product Issuer. In this case, the Product Publisher cannot pay its obligations (coupon and principal value of the Product) on a predetermined date.

• INTEREST RATE RISK
  
  In general, product price movements are inversely proportional to interest rates; this means that if the benchmark interest rate rises, the price of the product has the potential to decrease. On the other hand, if the benchmark interest rate falls, the product price has the potential to increase.

• MARKET RISK
  
  Product owners face the risk of potential losses due to a downward trend in Product prices within the secondary market. Losses (capital loss) can occur if the Product is sold within the secondary market before maturity at a lower selling price than the purchase price.

• LIQUIDITY RISK
  
  In unfavorable market conditions, customers cannot conduct purchase and resale transactions if there is no demand and/or supply in the secondary market for the Products that they wish to transact.

• CURRENCY RISK
  
  This risk occurs if the currency of the Product owned or purchased by the customer is different from the currency of the customer's investment source. Customers may incur losses as a result of currency movements.

• RISK OF REGULATION CHANGES
  
  Changes in regulations relating to Products, including but not limited to Product taxation, may affect the return value of Products that will be received by customers.

• RESPONSIBILITY RISK
  
  All interest and product principal are paid by the Product Issuer to the Custodian Bank where the Product is deposited. Delay in payment of interest and principal of the Product by the Product Issuer  may result in delay of payment to the customer of the Product.
  
  

TRANSACTION NOMINAL TERMS

BOND TRANSACTION PROCESS IN BANK COMMONWEALTH


• RETAIL SBN IN THE PRIMARY MARKET

BONDS IN THE SECONDARY MARKET THROUGH THE NEAREST BANK COMMONWEALTH BRANCH

• Step-1: Make sure you already have a Savings Account at Bank Commonwealth
• Step-2: Open an Investment Account through CommBank SmartWealth application or the nearest Bank Commonwealth Branch
• Step-3: Understand and select the Bond series you want to trade and complete the Bond transaction form.

Disclaimer
Bond products are not deposit products issued by the Bank. Bond product liability is the full responsibility of the issuer. Bond products are not issued and are not guaranteed by the Bank. This product is also not included in the scope of the object of the guarantee program from the Deposit Insurance Corporation (LPS). This product has investment risks, including loss of all capital and foreign exchange risk, therefore the decision to invest in this bond product is entirely the responsibility of the customer, which is made consciously and without coercion from any party. The Bank does not have any liability for investment losses in bond products.