The establishment of DanaInfra Nasional Berhad (“DanaInfra”) was pursuant to the Economic Council’s decision on 14 June 2010 after an in-depth consideration for the need to have an Infrastructure Financing Entity (“IFE”) to advise and undertake funding for the proposed My Rapid Transit project (“MRT Project”). The main objectives of the IFE are to:
Separate fund raising activity from infrastructure construction;
Develop the most cost competitive, efficient and sustainable financing models; and
Maintain Government’s fiscal position through the most competitive financing and timely disbursement of
funds.
Consequently, DanaInfra was established on 3 March 2011 as a company wholly-owned by Minister of Finance, Incorporated with the main objective to undertake funding for infrastructure projects assigned by the Government.
As a funding vehicle for certain infrastructure projects, DanaInfra has a role and mandate to:
Advise on best methods of fundraising exercise and most effective payment structures;
Develop best structures for long-term funding at efficient cost;
Execute and implement fundraising and payment strategies; and
Identify strategic investors.
Daud is an investor who had invested RM100,000 in a 10-year DanaInfra Retail Sukuk. At the time of subscription, the Profit Rate of DanaInfra Retail Sukuk was 3.74% per annum and the initial price was RM100.
He can either:
1) Hold DanaInfra Retail Sukuk until maturity;
2) Sell DanaInfra Retail Sukuk in full / partial at a premium on a business day at anytime during the
tenure; or
3) Sell DanaInfra Retail Sukuk in full / partial at a discount on a business day at anytime during the
tenure.
Case Study 1 – Hold until maturity
If Daud invests in DanaInfra Retail Sukuk and holds them to maturity, his investment returns can be
calculated as follows:
Semi-annual profit payment = RM100,000 x (3.74% / 2)
= RM1,870
Total profits = RM1,870 x (2 period per year x 10)
= RM37,400
Total investment proceeds = RM37,400 + RM100,000
= RM137,400
Investment rate of return (*) = Total profits / (Face Value x holding period)
(per annum) = RM37,400 / (RM100,000 x 10 years)
= 3.74% per annum
Case Study 2 – Sell at a premium
If Daud sells his investment after a 90-day holding period, when the price has increased to RM103 from
the initial price of RM100, his investment returns can be calculated as follows:
Selling proceeds = Face Value x (Selling price / Initial price)
= RM100,000 x (RM103 / RM100 )
= RM103,000
Gain = RM103,000 – RM100,000
= RM3,000.00
Investment rate of return (*) = Gain / (Face Value x holding period / number of days in a year)
(per annum) = RM3,000 / (RM100,000 x (90 days / 365 days))
= 12.17% per annum
Case Study 3 – Sell at a discount
If Daud sells his investment after a 90-day holding period, when the price has decreased to RM98.00
from the initial price of RM100.00, his investment returns can be calculated as follows:
Selling proceeds = Face Value x (Selling price / Initial price)
= RM100,000 x (RM98 / RM100 )
= RM98,000
Loss = RM98,000 – RM100,000
= -RM2,000
Investment rate of return (*) = Loss / (Face Value x holding period / number of days in a year)
(per annum) = (-RM2,000 ) / (RM100,000 x (90 days / 365 days))
= - 8.11% per annum
