MALAYSIA: Central Bank To Issue Senior Citizen Bonds

KUALA LUMPUR (Xinhua), February 13, 2008: Senior citizens will have the chance to invest in Bank Negara Malaysia's (Central Bank of Malaysia) latest bonds in March as the central bank issues bonds worth of some 2 billion ringgit (US$606.06 million), local media reported today. The bond promises an annual return of five percent a year, which is better than the current interest rate on fixed deposits of 3.7 percent. Bon Simpanan Merdeka (Independent Saving Bonds) 2008 is the ninth such bond, where only senior citizens are allowed to invest. It started in the year 2000. The new bonds will be issued on April 1 while subscription begins from March 3 to 31. "The bond is an additional savings instrument for senior citizens who are 55 years and above and not employed on a full- time basis," the central bank said in a statement issued yesterday. The bond has a three-year tenure and it allows investors flexibility to redeem their money before the maturity date. "Bondholders may not redeem earlier than the first profit payment, which will be made through the bondholders' accounts with their agent banks. Minimum redemption amount allowed is 100 ringgit (US$30)," the New Straits Times quoted the bank as saying. The minimum investment is 1,000 ringgit (US$303) with a maximum of 50,000 ringgit (US$15152) per investor. The bond can be subscribed at all commercial banks. Copyright (C) english.eastday.com