Bank To Buy Back Plan, Anytime

Bandar Seri Begawan - Bruneians now have an investment option that allows them to get their money back even before the investment matures. This is through Bank Islam Brunei Darussalam's (BIBD) Certificate Musyarakah Musahamah and Al-Bai', or Tradable Musyarakah Certificate (TMC).

But how does it work?

It essentially means that an investor's money will not be tied up in this investment plan throughout the 180-day investment period. This addresses common concerns of people who want to invest their money but are too anxious to park their funds in a plan that does not allow them to get their money back anytime they need it for various reasons, such as a family emergency.

"The concept provides the trading platform facilitated by BIBD for investors who wish to redeem their certificates prior to maturity," according to bank documents.

"This Syariah concept allows the bank to sell the redeemed TMC certificates to other investors during the investment period."

If investors or TMC holders want their money back before the end of the 180-day investment period, they can go to the bank's headquarters and its Kuala Belait branch, which will buy back the certificates.

BIBD assures that it has an obligation to buy back the certificate when the holder wishes to redeem his money.

The price for which the certificates will b e bought will be based on the daily bid price to b e published by the bank at its branches.

"BIBD, however, will set a last date (for redemption of the certificates), which is three days prior to maturity," the bank said in a document released yesterday.

Once the bank buys back the certificate, it can then sell this to another investor.

Certificate holders will not be allowed to sell the TMC to another investor.

Moreover, people who want to 'buy the TMC or increase their investment after the subscription period (February 21 and 22) can do so only when the bank has redeemed TMCs up for sale.  -- Courtesy of The Brunei Times

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