INDONESIA GOVERMENT BOND (FR Series)

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INDONESIA GOVERMENT BOND (FR Series)
IDR Denomination, Tenor More than 10 Years
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INDONESIA GOVERNMENT BOND (FR SERIES)
IMPORTANT RISK WARNING!
1. Price of Bond is exposed to market fluctuation. Investor may suffer loss of invested capital.
2. Bond purchased at premium price will converge to nominal value at maturity, which is lower than the
initial principal invested.
3. This Bond is NOT guaranteed by HSBC and/or members of the HSBC Group (HSBC Holdings Plc and its
subsidiaries and associates companies or any of its branches) and is NOT covered by the Government of
Indonesia blanket guarantee program or deposit insurance schemes.
4. This Product is NOT available to U.S. Person.
5. Other risks related to this Product are available in “Risk Disclosure” and we recommend you have it
carefully read before deciding in purchasing this Product.
INVESTOR DECLARATION
I/We confirm that HSBC has provided sufficient explanation on all information given in this Product Feature
Document. I/We have received, read, and understood the Prospectus, Terms of Business Letter and the
relevant Terms and Condition (including characteristic, benefits, risks and fees associated with this product).
_______city________, ______dd-mm-yyyy________
S.V.
____________________________________________
Investor Name:
SALES PERSON DECLARATION
I confirm that sufficient explanation on all information in this Product Feature Document has been given. I
have provided the Prospectus, Terms of Business Letter, and the relevant Terms and Condition (including
characteristic, benefits, risks and fees associated with this product).
_______city________, ______dd-mm-yyyy________
____________________________________________
Sales Person Name:
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INDONESIA GOVERNMENT BOND (FR SERIES)
IDR Denomination, Tenor more than 10 Years
The authorised sales staff of The Hongkong and Shanghai Banking Corporation Limited (“HSBC”), acting
through any of its offices in Indonesia is required to go through this document with you before you decide to
purchase this product. This Product Feature Document is designed to highlight the key points of the product. It
is not exhaustive and should not substitute reading and understanding the product’s Terms and Conditions and
brochure. We trust you find this document helpful.
Product Type
Indonesian Government Bonds FR Series
(FR0054, FR0056, FR0057, FR0058, FR0062, FR0064, FR0065,
FR0068, FR0070)
Issuer
Direktorat Pengelolaan Surat Utang Negara
Direktorat Jenderal Perbendaharaan
Departemen Keuangan Republik Indonesia
Gedung Frans Seda Lantai 4
Jl. DR. Wahidin Raya No 1- Jakarta 10710
Sub Registry Bank
The Hongkong and Shanghai Banking Corporation Limited,
Jakarta Branch
Menara Mulia, 25th Floor
Jl. Jend. Gatot Subroto Kav. 9-11
Jakarta 12930
Investment Objective
Objective from investing in bonds is to earn regular fixed income in the
form of a coupon and potential gain from capital appreciation.
Definition
Government bond FR Series is a fixed income instrument issued by
Government of Republic of Indonesia at certain time with a fixed coupon,
whereas in this case the issuer guarantee the capital at maturity added
with a coupon payment paid in regular basis.
Government Bond Pricing
Government bond price is the value of each participation in government
bond FR series.
Government Bond Coupon
FR0054
FR0056
FR0057
FR0058
FR0062
Dealing Frequency
Every Jakarta bourse day
Maturity Date
FR0054
FR0056
FR0057
FR0058
FR0062
Minimum Investment Amount
IDR 50,000,000 (Fifty million rupiah),
with a multiplication of IDR 1,000,000 (one million rupiah) there after
Minimum Redemption Amount
IDR 50,000,000 (Fifty million rupiah),
with a multiplication of IDR 1,000,000 (one million rupiah) there after
Risk Level
FR 54, FR56, FR58, FR64, FR 70
Low to Medium (Risk Rating: 2)
: 9.50% p.a
: 8.375% p.a
: 9.50% p.a
: 8.25% p.a
: 6.375% p.a
: 15 July 2031
: 15 September 2026
: 15 May 2041
: 15 June 2032
: 15 April 2042
FR0064
FR0065
FR0068
FR0070
: 6.125% p.a
: 6.625% p.a
: 8.375% p.a
: 8.375% p.a
FR0064
FR0065
FR0068
FR0070
: 15 May 2028
: 15 May 2033
: 15 March 2034
: 15 March 2024
There is risk of losing portion of capital over the term of the investment.
This product is expected to demonstrate moderately low level of price
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fluctuations over short period of times. This product may be suitable for
investors who are happy to accept low to medium level of investment risk.
FR 57, FR62, FR65, FR 68
Medium (Risk Rating : 3)
There is risk of losing portion of capital over the term of the investment.
This product is expected to demonstrate moderate level of price
fluctuations over short period of times. This product may be suitable for
investors who are happy to accept medium level of investment risk.
Fee
NIL
RISK DISCLOSURE
Investment in this product involves certain risks, including without limitation to the risks described below. This
section does not purport to describe all risks in the product, either as such risks exists at the Launch Date or as
such risks may change in the future. Ultimately, the Investor shall be solely responsible for identifying and
agreeing to any other risks that may be applicable to it in making the investment. The main risks associated
with investing in this product, include:
1. Market Risk
Many factors can affect the movement of the relevant Bond’s price, including the political and economic
environment, business conditions, investor sentiment and confidence.
2. Default Risk
If the Bond issuer defaulted in fulfilling their obligations, then this will affect the return on the Bond.
3. Re-investment Risk
Investor needs to consider the ability to re-invest the principal investment amount plus the coupon in other
suitable products with similar return and tenor.
4. Liquidity Risk
This Bond can only be sold or redeemed within bourse day in Jakarta, Hongkong and New York.
5. Return Risk
Bond prices and interest rates fluctuate; as such there is no guarantee that this Bond will produce yields in
excess of those available on other investments products.
6. Regulatory Risk
Any changes to the valid laws and regulations as well as taxation and Government policies especially in macro
economic field that relates to Bond may affect the return and investment result that will be received by this Bond
and it may impact the Investors’ investment return.
INVESTOR COMMITMENT
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This Product is likely to be suitable for you if you take a stable to moderate bullish view on the
underlying throughout the investment period.
In order to guard against over exposure to any investment risks, you should avoid excessive investment
in a single type of investment in regards to total proportion of your overall portfolio,
This investment is likely to be suitable for investors who have relevant experience in investing in mutual
fund and Bond.
Investors are required to complete Risk Profiling Questionnaire to determine their investment risk profile
before investing in Bond. Customer-Directed Transaction must be completed, if investor decide to
invest in Bond with higher risk profile compared to the investor’s risk profile.
Investors should carefully consider if the Bond is a suitable investment given their personal
circumstances, including the tolerance to risks, time horizons, investment objectives and other financial
arrangements.
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Investors should regard Bond as investment product and should make sure that appropriate cash are
retained to meet any unforeseen circumstances.
If Investors wish to discuss their Bond holdings, which were purchased through HSBC, Investors can
contact Relationship Manager or Customer Service Representatives or through HSBC PhoneBanking
Services at telephone (021) 5291 4722 or 0804 186 4722 or through mobile phone at 64722.
IMPORTANT NOTES
This Bond product feature document is indicative and its content is subject to change based on issuer
policies. If there is a change, our sales staff will inform the changes to Investors as a material of
investment reconsideration over this Bond.
Prior to applying to this product, you must carefully read and consider the following important matters:
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You are the sole beneficial owner/s of all monies to be invested, free from any charge, encumbrance or
claim whatsoever;
You are not using any borrowed money (whether in the form of an overdraft or otherwise) or any other
form of financing, whether from the Bank or a third party, in order to enter into this investment product
set out herein or any part thereof;
You shall have made your own investigations to your satisfaction, and shall solely be responsible for
determining whether or not you are permitted to purchase and to hold this Bond under any laws,
regulations or any other restrictions applicable to you and you shall have to be fully informed of, and
shall have to have sufficient knowledge and experience to be able to evaluate, the tax and accounting
implications, the potential financial benefits and risks, the appropriateness in light of your individual
financial circumstances, business affairs, and risk management capabilities, and the conformity to any
policy and objectives, of this Product. Without limiting the foregoing, you must read, understand and
accept fully the risks disclosed in the section ”Risk Disclosure”;
You will act in reliance on your own judgment and evaluation or upon professional advice you have
obtained independently of HSBC as to such issues, you are not relying upon the views or advice of
HSBC and upon such evaluation, prepared to bear for your own account the risks inherent in this
product;
If, by reason of any law, act of state, an illegality or force majeure, HSBC is prevented from making any
payment or delivery under this Product through any of its branches or offices in Indonesia, there shall
be no obligation upon any branch/office of The Hongkong and Shanghai Banking Corporation Limited
outside Indonesia to make such payment or delivery. Furthermore, HSBC will not be liable for any
losses incurred as a result thereof;
The giving of your agreements, representations, warranties and undertakings contained herein and in
any other document related to this Product will not conflict with or breach of any provision within your
constitution or any law, regulation, licence or court decree to which you are subject to, and all
necessary notifications and registrations shall have to be duly effected, and shall remain in full force
and effect, such that the execution and performance of your obligations under this Bond and the giving
of your agreements, representations, warranties and undertakings contained in any document related to
this Bond is valid, legal and binding in accordance with the terms thereof under all relevant laws;
Your right (if any) to take any action (in court or otherwise) to invoke, or to otherwise seek, the nullity of
this Product or any part thereof shall be waived;
HSBC and its affiliates shall be fully indemnified from any and all costs, losses and liabilities incurred as
a result of the breach of any of the agreements, representations, warranties and undertakings
contained herein.
The information in this document is derived from sources believed to be reliable but which have not been
independently verified. The Hongkong and Shanghai Banking Corporation Limited makes no guarantee of its
accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor is
it liable for any direct or consequential damages arising out of any person’s reliance upon this information. All
charts and graphs are from publicly available sources or proprietary data.
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HSBC in its full discretion has the right to reject applications for this product.
This document must be distributed in its entirety.
Issued by:
Distributed by:
Ministry of Finance of Republic of Indonesia
This Product Feature Document and any statement and terms contemplated herein is made in English and
Indonesian version, whereby the English version provided herein is for reference purpose only. Therefore,
whenever there is a discrepancy between the English version and the Indonesian version, the Indonesian
version shall prevail.
DISCLAIMER
INVESTMENT IN THE FORM OF BOND CONTAINS RISK. A PROSPECTIVE INVESTOR MUST READ AND
UNDERSTAND THE PROSPECTUS PRIOR TO DECIDING TO INVEST IN BOND. PAST PERFORMANCE
DOES NOT INDICATE FUTURE PERFORMANCE.
HSBC is merely acting in the capacity as selling agent. This investment product is NOT a bank product and only
distributed by HSBC therefore it is not guaranteed by HSBC and/or members of the HSBC Group (HSBC
Holdings Plc and its subsidiaries and associates company or any of its branches). This investment is subject to
investment risk including possible loss of principal amount invested. HSBC does not give any advice on the
investment decision of the prospective investors. The corporate logo of HSBC used in any investment merely
evidences the distribution agreement between HSBC and Ministry of Finance of Republic of Indonesia
managing the investment. This document does not constitute the dissemination of the information, and offer to
sell, or a solicitation of an offer to buy any investment in any jurisdiction where, or to any person to whom, it is
unlawful to make any such offer or solicitation.
Issued by The Hongkong and Shanghai Banking Corporation Limited.
HSBC is one of the world’s largest banking and financial services organisations. With around 6,900 offices in both established and faster-growing markets, we aim to be where the growth
is, connecting customers to opportunities, enabling businesses to thrive and economies to prosper, and ultimately helping people to fulfill their hopes and realise their ambitions.
We serve around 60 million customers through our four global businesses: Retail Banking and Wealth Management, Commercial Banking,Global Banking and Markets, and Global
Private Banking. Our network covers 84 countries and territories in 6 geographical areas: Europe, Asia Pacific region, the Middle East, Africa, North America and Latin America. Our aim
is to be acknowledged as the world’s leading international bank.
Listed on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by over 221,000 shareholders in 134 countries and territories.
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