Islamic Treasury

Commodity Murabahah Money Market Deposit-i (CMMMD-i)

• Commodity Murabahah Money Market Deposit-i is sale of certain specified commodities, on a cost plus profit basis
• In the Islamic financial market, Commodity Murabahah refers to placement of funds for certain period of time supported by the commodity trades as the underlying transaction
• However, the buyer will pay the seller on deferred basis.
• Commodity Murabahah Money Market Deposit-i Product Disclosure Sheet



Wakalah Money Market Investment Account-i (WMMIA-i)

• Wakalah Money Market Investment Account-i (WMMIA-i) is a type of unrestricted investment account based on the Wakalah contract where the Investment Account Holder (IAH) as principal (muwakkil) authorizes RHB Islamic Bank (Bank) as his agent (wakil) to perform a particular task on matters that may be delegated for the purpose of investment (Wakalah bil Al-istithmar).
• Wakalah bi Al-istithmar is a contract where a party, as principal (muwakkil) authorizes another party as his agent (wakil) to perform a particular task on matters that may be delegated, with or without imposition of a fee. A wakalah contract may be entered into for the purpose of investment (Wakalah bi Al-istithmar).
• Investment tenure is from overnight up to 364 days.
• Minimum investment amount is RM 500,000.
• No wakalah fee charged.
• This product is not protected by PIDM.
• Wakalah Money Market Investment Account-i Product Disclosure Sheet

Islamic Commercial Papers (ICP)/Islamic Medium Term Notes (MTN) Programme

• Short term papers issued by Corporates that are on a 1 to 12 months rollover and issued at a discount and redeemed at par (subject to Shariah Committee of RHB Islamic Bank approval) for purposes of working capital and / or refinancing
• The medium term papers on the other hand are issued on a typical basis of 1 to 7 years

Bank Negara Monetary Notes-i (BNMN-i)

• BNMN-i is an instrument issued by Bank Negara (BNM) based on Shariah principles to manage liquidity in the Islamic Money market at a fixed profit rate

Malaysian Islamic Treasury Bills (MITB)

• Malaysian Islamic Treasury Bills (MITB) is issued by the Government to meet its short term development expenditure

Murabahah Notes Issuance Facility (MUNIF)

• Instruments issued by corporates based on the principle of Murabahah
• The instrument is issued at a discount and redeemed at the face value upon maturity (subject to Shariah Committee of RHB Islamic Bank approval)
• Murabahah principle refers to sale and purchase transaction for the financing of an asset or project whereby the cost and profit margin are made known and agreed by all parties involved
• Settlement will be done in lump sum

Murabahah Negotiable Certificate Of Deposits-i (MNCD-i)

• This is an Islamic Negotiable Instrument (INI) with maturity of [TBD*] months/years from the date of issue
• The Shariah concept applicable is Commodity Murabahah via Tawarruq arrangement
• The customer will receive the selling price amount (principal plus profit) if the INI is held to maturity
• This product is NOT covered by the Malaysia Deposit Insurance Corporation (PIDM)
• Benefits to customer;
• Liquid instrument and tradable in secondary market, under which transfer of ownership is via certificates;
• Potential to earn higher return than normal term deposit; and
• Flexibility for customers to manage their investment
• Murabahah Negotiable Certificate of Deposits-i Product Disclosure Sheet

RHB Islamic Bank has a wide range of Over the Counter (OTC) foreign currency products to meet your international trade and personal needs. In addition, the Bank provides money changing business available at our branches to cater to your requirements.

The type of products and services offered includes:

• Telegraphic Transfers
• Demand Drafts
• Travellers Cheques

Sukuk Trading & Distribution

The type of products and services offered includes:

• Market Making activities for active and benchmark papers
• Provide trading idea, market update and issuer briefs to clients
• Provide PDS prices to the customer for the customer’s needs
• To co-distribute primary issuance of fixed income securities arranged by RHB Islamic

BNM Sukuk

• BNM Sukuk is based on the Shariah contract of Ijarah or 'sale and lease back' concept, a structure that is widely used in the Middle East
• A special purpose vehicle, BNM Sukuk Berhad has been established to issue the sukuk Ijarah
• The proceeds from the issuance will be used to purchase Bank Negara Malaysia's assets
• The assets will then be leased to Bank Negara Malaysia for rental payment consideration, which is distributed to investors as a return on a semi-annual basis
• Upon maturity of the sukuk Ijarah, which will coincide with end of the lease tenure, BNM Sukuk Berhad will then sell the assets back to Bank Negara Malaysia at a pre-determined price

Islamic Private Debt Securities (IPDS)

• Bond issued by Corporates based on the Shariah principles of Musharakah, Mudharabah, Istisna', Murabahah, Ijarah, Wakalah or other approved Shariah principles

Government Investment Issue (GII)

• GII is an instrument issued by Government of Malaysia based on Shariah principles for the purpose of funding government infrastructure

Khazanah Bond/Sukuk

• Bond/Sukuk issued by Government of Malaysia investment arm, Khazanah Nasional Berhad based on the principle of Musharakah or any other Shariah contracts determined by the issuer

Islamic Profit Rate Swap (IPRS)

• Bilateral agreement between parties to make regular payments to each other at an agreed interval within the same currency
• Essentially to exchange cash flow of fixed to floating (or vice versa)
• Fixed rate is locked and remains until the end of tenure and the floating rate is referenced on an Index and is determined at every settlement date
• Only the net off amount is exchanged at settlement date
• Based on the Shariah concepts of Wa'ad, Commodity Murabahah and Muqasah
• Exchanges will be done through a Commodity Murabahah transaction. No exchanges of Notional Amount

Islamic Cross Currency Swap (ICCS)

• Bilateral agreement between parties to make regular payments to each other at an agreed interval within the different currency
• Essentially to cover profit rate and FX rate
• Fixed rate is locked and remains until the end of tenure. Floating rate is referenced on an Index and is determined at every settlement date
• Exchanges will be done through a Commodity Murabahah transaction

Range Accrual Murabahah Negotiable Certificate of Deposit-i (RA MNCD-i)

• Range Accrual MNCD-i is a Murabahah Negotiable Certificate of Deposit-i (MNCD-i) where the returns are linked to the performance of a Reference Rate.
• The Reference Rate can be based on an underlying currency pair or profit rate index. The returns on the Range Accrual MNCD-i (“Range Accrual Return”) will be determined by the movement of the Reference Rate against the Range.
• The Range which is fixed upfront is a set of Reference Rate which form the upper and lower limit of the Range Accrual MNCD-i contract.
• The profit payable on the Range Accrual MNCD-i will be determined by the actual number of days the Reference Rate is within the Range (i.e. Lower Limit ≤ Reference Rate ≤ Upper Limit) for each Observation Period.
• The performance of the Reference Rate will be determined on a daily basis during the Observation Period.
• If the Reference Rate stays within the Range every day during the Observation Period, the Client will receive the Maximum Profit Rate.
• If the Reference Rate moves outside the specified Range every day during the Observation Period, the Client will receive the Minimum Profit Rate. If the Reference Rate moves within and outside of the Range during the Observation Period, the Client will receive the Participating Profit Rate which is more than the Minimum Profit Rate but lower than the Maximum Profit Rate.
• Please note that the Minimum Profit Rate can be zero depending on the terms of the particular Range Accrual MNCD-i contract.
• The Range Accrual MNCD-i may be transferable to a third party, subject to the outcome of a suitability assessment conducted by RHBIB prior to a transfer taking place. On the Maturity Date, the final profit payment and the deposit will be paid to the last registered bearer of the certificate based on RHBIB’s records.
• Please take note that the Range Accrual MNCD-i is not insured by Perbadanan Insurans Deposit Malaysia (PIDM).
• Range Accrual MNCD-i may be suitable for Clients who:
• have a view on the movements of a particular reference rate for the tenor of the contract.
• have a healthy risk appetite and are looking for potentially higher profit returns.
• are willing to take the risk of earning the minimum profit rate which could be zero, on the chances of earning the participating or the maximum profit rate.

Islamic FX Options

• Islamic FX Options is a plain vanilla option contract which allows Client to hedge their foreign currency exposures. The terms of the contract will allow the Client to enter into the contract as a “Buyer” of the Option from RHB Islamic Bank (“RHBIB”). The types of FX Options are the Call Option or the Put Option.
• The Product can be used:
• a) by Client to hedge their FX exposures to the Strike Rate which they are comfortable with;
• b) to limit Client’s financial risk to the amount of the premium paid to RHBIB.
• This product may be suitable for Clients who:
• are looking to hedge foreign currency exposures at a potentially better rate than the prevailing forward rate;
• understand the risks associated with this product and are comfortable to bear the risks;
• have a view on the movements of a particular underlying currency pair for the tenor of the contract;
• are able to hold the contract to maturity.

Islamic Structured Forwards (Islamic Range Forward)

• Islamic Range Forward is a foreign exchange contract for the exchange of currencies at a rate which is determined by reference to the performance of the prevailing spot rate of the currency pair against a set of exchange rates (the “Range”) instead of a single fixed rate. The Range which is agreed with the Client and fixed upfront is made up of an upper limit (“Upper Strike Rate”) and lower limit (“Lower Strike Rate”). The applicable rate of exchange for a settlement date will be determined based on the spot rate at 2 p.m. Kuala Lumpur time on the Expiry Date (“Fixing Price”).
• If the Fixing Price is equal to or lower than the Lower Strike Rate (Fixing Price ≤ Lower Strike Rate), Client will exchange the Nominal Amount in one currency for another at the Lower Strike Rate with RHBIB on the Settlement Date.
• If the Fixing Price is equal to or higher than the Upper Strike Rate (Fixing Price ≥ Upper Strike Rate), Client will exchange the Nominal Amount in one currency for another at the Upper Strike Rate with RHBIB on the Settlement Date.
• If the Fixing Price is between the Lower Strike Rate and Upper Strike Rate (Lower Strike Rate > Fixing Price < Upper Strike Rate), Client has no obligation to exchange the currencies with RHBIB on the Settlement Date. However, in this last scenario, Client may choose to enter into a foreign exchange spot contract with RHBIB at the prevailing market rate subject to RHBIB’s standard terms.
• The Islamic Range Forward contract is constructed so that it provides protection against adverse exchange rate movements beyond the Upper Strike Rate / Lower Strike Rate while retaining some upside potential to capitalize on favourable currency fluctuations. It can be tailored as a zero-cost structure and if so, is generally used as an alternative to vanilla options which require a payment of premium.
• The Product:
• a) provides protection against adverse exchange rate movements beyond the Upper Strike Rate / Lower Strike Rate, while retaining some upside potential to capitalize on favorable currency fluctuations.
• b) may be used by Client to participate in the market rate when the Fixing Price settles in between the Upper Strike Rate and Lower Strike Rate;
• c) is a flexible structure which enables Client to match the payment terms of their underlying cash flow.
• The Islamic Range Forward can be structured into one or more tranches depending on the cash flows of the underlying obligations.
• This Product may be suitable for Clients who:
• are looking to hedge foreign currency exposures at a potentially better rate than the prevailing forward rate;
• understand the risks associated with this product and are comfortable to bear the risks;
• have a view on the movements of a particular underlying currency pair for the tenor of the contract;
• are able to hold the contract to maturity.

Islamic Structured Investment Linked to Index (Islamic SILX)

• Islamic SILX is a Shariah-compliant and principal-protected structured investment product primarily based on the Islamic concepts of Musawamah, Wa’d, Commodity Murabahah, and Wakalah that delivers principal protection and returns
• The Islamic SILX is structured based on the following two building blocks:

1. Placement of investment principal
   When held to maturity, 100% of initial investment principal will be returned to investor. If early terminate, the investor may receive an amount less than their initial investment amount depending on unwinding cost

2. Single or series of Undertakings to enter into Commodity Murabahah (CM) via Tawarruq, benchmarked against a Reference Index level.
   The undertakings (Wa’d) to enter into CM given by RHBIB to the Investor with predetermined economic terms at the start of investment. These terms do not change throughout the investment period the Islamic SILX returns are derived from amount received from options.

• The actual coupon amount is benchmarked against a Reference Index level on predetermined observation dates:
• If index’s level is above the Strike Point (determined upfront), the undertaking to enter into CM (option) to undertake a payoff payment will be exercised and profit will be paid by RHB Islamic Bank to investor as a profit. The profit amount received by investor will be based on formula agreed upfront.
• If index’s level is below the Strike Point, the undertaking to enter into CM (option) will not be exercised and no settlement between RHBIB and investor. The investor will either receive Minimum Profit payment or zero profit depending on terms and conditions agreed upfront.
• This Product may be suitable for Clients who:
1. are looking to gain profit against reference index,
2. understand the risks associated with this product and are comfortable to bear the risks;
3. have a view on the movements of reference index;
4. are able to hold the contract to maturity.

Download Product Highlights Sheet here.