Islamic Range Accrual investment is a principal protected product in which the profit return is only earned whenever the underlying reference index, falls within a specified range
Islamic Range Accrual is structured based on the Negotiable Islamic Debt Certificate (NIDC) and the Wa’d concepts. The application of NIDC and Wa’d has been approved by the Shariah Committee on July 30, 2010
It is offered under the Shariah contract of Bai Bithaman Ajil for Negotiable Instrument of Debt Certificate (NIDC), and Wa'd (promise)
The underlying asset, NIDC, refers to a debt certificate issued by Maybank Islamic Berhad to the Investor. It is redeemable at its nominal value on the maturity date. It is structured along the concept of Bai' Bithaman Ajil (deferred payment sale)
The Bank (Issuer) also promises (Wa'd) to the Investor (Buyer) that the Bank (Issuer) will purchase assets from the investor at the Wa’d Selling Price (at cost plus profit), where the Wa’d Selling Price is linked to the Variable Profit of the investment
Minimum amount: MYR1, 000,000 and in multiple of MYR100, 000.