PGD PREMIUM GROWTH

    General Description

    Enjoy potential of maximum yield with Principal Guaranteed Deposit (PGD) Premium Growth which offers higher return rate than term deposit. 

    PGD Premium Growth is a Principal-Protected Structured Product. This Product is a combination of Customer’s fund placement in deposit with a Knock-Out FX Barrier Option transaction. 

    At the time the Customer places fund in a currency (referred to as Base Currency), the Customer will be informed of the minimum and maximum rate of return to be obtained in that currency as agreed with the Bank. For PGD Premium Growth, the Bank will perform 2 transactions for the Customer: 

    1. Term Deposit placement in one of the currencies (Base Currency)
    2. Knock-Out FX Barrier Option transaction 

    The return rate for PGD Premium Growth is accumulated from the minimum return of PGD Premium Growth and FX Barrier Option payout, which value will be greater than zero if on the Fixing Date, the Fixing Price is between the Strike Price and the Barrier Price.

    Benefits & Risks

    Benefits & Risks

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    Product Features

    1. Minimum Placement1): USD 30,000 (or equivalent value in other currencies) per Customer.
    2. Currency pairs: Combination of currencies traded in the Bank, which are: EUR, GBP, AUD, NZD, USD, CAD, CHF, JPY, CNH, IDR2) and SGD.
    3. The placement terms: 1, 3, 6, 12, 18, 24, 30 and 36 months.
    4. PGD Premium Growth placement amount may not be increased before the maturity date. Customer wishing to make re-placement of its funds after the Maturity Date shall be treated as a new PGD Premium Growth placement.
    5. Customer to the extent possible should not withdraw PGD Premium Growth placement prior to the maturity date (early termination).
    6. Customer shall not be allowed to change the currency pair and nominal of PGD Premium Growth placement during the current term of placement.
    7. In accordance with the regulations of Bank Indonesia, the maximum fund able to be placed by the Customer to PGD Premium Growth shall be the average daily balance for 90 (ninety) calendar days in the same currency placed in Bank UOB Indonesia account, including savings account, current account and term deposit products.

    1) The minimum placement amount is subject to change pursuant to the Bank’s policy.

    2) PGD Premium Growth placement involving IDR complies with the prevailing regulations on foreign exchange transaction against Rupiah.

     

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    Benefits

    1. Fully principal protected
    2. Potentially higher yield compared to deposits 

    Risks

    1. Risks arising in the event Customer makes an early termination resulting in Customer not entitled to the corresponding interest of PGD Premium Growth and Customer shall be imposed with early termination penalty/fee, such as FX Barrier Option Derivative Termination Fee and Deposit Termination Fee (Deposit Break).
    2. Customer may be exposed to market risk if financial market movements are unfavorable to Customer, resulting in Customer receiving minimum interest from PGD Premium Growth.
    3. Risks due to any regulatory changes including the amendment to the provisions of the regulations, policies of the Government of Indonesia, Bank Indonesia and/or Financial Services Authority (OJK).
    4. This product is not covered under the insurance program of Indonesia Deposit Insurance Corporation (LPS).

     

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    Illustration

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    There is no additional transaction fee for PGD Premium Growth placement.

     

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    Illustration on PGD Premium Growth Placement3)

    Currency Pair : AUD/USD
    Base Currency : USD
    Placement Nominal : 1,000,000
    Placement / Value Date : 5 April 2023
    Fixing Date : 9 October 2023
    Maturity Date : 11 October 2023
    Tenor : 189 Days
    Option Derivative Type : Call AUD (Up & Out)
    Spot Rate : 0.6760
    Strike Price : 0.6800
    Barrier Price : 0.7100
    Minimum PGD Premium Growth Interest : 1.70% p.a. (gross)
    Maximum PGD Premium Growth Interest : 7.40% p.a. (gross)

    *Interest rates are indicative and may change at times according to the condition at the time of PGD Premium Growth placement. 

    Possible scenarios that Customer can have: 

    Scenario 1
    If on the Fixing Date, the AUD/USD Fixing Price (market exchange rate) is below the Strike Price or above the Barrier Price, the Customer will receive minimum return with the following calculation: 
     
      Principal = USD 1,000,000
      Minimum PGD Premium Growth Interest = USD 1,000,000 x 1.70% x 189/360 days
        = USD 8,925
      Tax on Interest (20%) = USD 1,785
      Principal + Interest = USD 1,008,925 (before tax)
        = USD 1,007,140 (after tax)
    Scenario 2
    If on the Fixing Date, the AUD/USD Fixing Price (market exchange rate) is above the Strike Price and below Barrier Price, the Customer will receive return rate with the following calculation:
     
      Principal = USD 1,000,000
      AUD/USD Fixing Price = 0.7000
      Minimum PGD Premium Growth Interest = USD 1,000,000 x 1.70% x 189/360 days
        = USD 8,925
      FX Barrier Option Payout = USD 1,000,000 x (0.7000 – 0.6800) / 0.6800
        = USD 29,411.76
      Total PGD Premium Growth Interest = Minimum Interest + FX Barrier Option Payout
        = USD 8,925 + USD 29,411.76
        = USD 38,336.76
      Tax on Interest (20%) = USD 7,667.35
      Principal + Interest = USD 1,038,336.76 (before tax)
        = USD 1,030,669.41 (after tax)

    3)The sample calculation as set forth herein is for illustration only, and does not represent the exact proceed which may be received by the Customer and does not explain all possibilities which may arise and affect the proceed from this PGD Premium Growth transaction. Should the Customer have any inquiry or need additional information, the Customer is welcome to contact Global Markets Sales or the Bank’s Marketing.

    Withdrawal/Drawdown Prior to the Maturity Date 

    1. PGD Premium Growth product is highly not recommended to be withdrawn or drawn down prior to the maturity date as Customer will not be entitled to the corresponding PGD Premium Growth interest and there may be fee/penalty to be incurred to Customer, namely:
      • Deposit Termination Fee (Deposit Break); and
      • FX Barrier Option Derivative Termination/Unwind Fee
    2. The Customer must submit a formal letter of request in free format to the Bank to make Withdrawal/Drawdown Prior to the Maturity Date.

    Calculation Illustration 

    On the 30th day, the Customer requests for withdrawal/drawdown prior to the maturity date. 

    FX Barrier Option Derivative Termination Fee* = 1.25%
    Deposit Termination Fee (Deposit Break)* = 0.50%
    Placement Principal = USD 1,000,000
    Deposit Break Penalty = USD 1,000,000 x 0.50%
      = USD 5,000
    FX Barrier Option Derivative Penalty = USD 1,000,000 x 1.25%
      = USD 12,500
    Total PGD Premium Growth Withdrawal Penalty = Deposit Break Penalty + FX Barrier Option Derivative Penalty 
      = USD 5,000 + USD 12,500
      = USD 17,500
    Amount Received by Customer = USD 1,000,000 – USD 17,500
      = USD 982,500
    Total Loss of Customer = USD 17,500

    *FX Barrier Option Derivative Termination Fee and Deposit Termination Fee will be determined by the Bank.

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    Contact Us

    For more information, please contact Global Markets Sales:
    Jakarta : 021-21880810, 021-21880820, 021-21880830
    Bandung : 022-422 1427 (direct), 022-421 0981 (direct), 022-420 4491 Ext.3139/3469
    Semarang : 024-8644 8098 (direct), 024-8644 8089 (direct), 024-8644 8000 Ext.3202
    Surabaya : 031-548 2385 (direct), 031-548 2353 (direct), 031-547 1722 Ext.3256/3257
    Balikpapan : 0542-763 158 (direct), 0542-765 119 (direct), 0542-720 8888 Ext. 3355
    Medan and its surroundings : 061-457 6642 (direct), 061-455 3366 (direct), 061-415 6574 Ext. 3200
    Batam and its surroundings : 0778-4082200 (direct), 0778-4083726 (direct), 0778-4083727 (direct), 0778-4083666 (direct), 0778 – 7486000 Ext. 31015

    or contact / come to the nearest UOB Indonesia Branch Office in your city. 

     

    Disclaimer

    The above statement does not imply that the Bank provides recommendations to Customer (Investor) to carry out any transactions. Unless approved by the Customer, the Bank does not act as an advisor to the Customer (Investor) regarding this transaction or any other transaction. Likewise, the Bank does not accept any obligations with respect to the use of this information. Prior to conducting this transaction, Customer (Investor) is required to fully understand the terms, conditions and risks, and be able to accept these risks. If Customer (Investor) has any doubts regarding aspect of the proposed transaction, Customer (Investor) are to consult their own legal, tax, investment, financial and accounting advisors. The Bank does not make any statement or guarantee regarding the completeness of the information contained in this document. 

    The product information are subject to change at any time with prior notification, in particular following the applicable Bank Indonesia and/or the Financial Services Authority (OJK) regulations.