Features & Benefits
At Hong Leong Bank, we make your money work for you, providing money market instruments in conducting your investments and business in a highly competitive banking environment. Our range of products includes:
Negotiable Instruments of Deposit (NID)
NID is an financial instrument issued by bank certifying that a certain sum in MYR or Foreign Currency has been deposited with the issuing bank. It has a fixed tenor at a specified rate of interest (coupon rate may be fixed, floating or zero). NID can be bought or sold to a third party, but cannot be redeemed before its maturity.
Short Term Corporate Placement (STCP)
STCP provides an alternative investment avenue for customers to place their excess funds with bank at a more flexible tenor as compared to the rigid tenor of fixed deposits.
Bankers' Acceptance (BA)
BA is a Bill of Exchange drawn on and accepted by a bank with a specific maturity date to finance a customer for a trade transaction such as export, import and domestic trade. Trade companies may use this financing facility as a flexible source of working capital. Others may purchase issued BAs from banks as short term investments. It is a negotiable instrument, which may be sold to other investors if the owner of the BA wishes to redeem the principal.
Fixed Income: Government Bonds/Private Debt Securities
A company or a government that needs to raise funds can do so via issuing a bond. It is a cheaper way of raising money as compared to the conventional way of borrowing funds. Companies or government entities that issue bonds will have to pay a fixed or floating coupon (interest) until a definite future date (maturity) at regular intervals (usually semi-annually) to investors. At the end of this period, the issuer will have to return the principal amount invested by the investor. These bonds can be also bought and sold via the secondary market.
Benefits of Investing in Bonds
- Lower risk investment as compared to equities
- Regular interest payouts through coupons
- Potentially higher interest rate compared to fixed deposits
- Potential capital appreciation arising from buying and selling bond via secondary market
Hong Leong Bank also offers investors other variants of bonds such as convertible bonds, callable bonds and zero-coupon bonds.