Dual Currency Return (DCR) – Knock In Knock Out (KIKO)

Forex investment solutions with a combination of savings products and derivative products

Competitive Returns

Returns are higher than conventional deposits

Faster Settlement Feature

Disbursement before maturity if KO level is touched

Available in Various Currencies

Choose a currency according to investment needs

Other Advantages

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Global Access

Wide range access to ATM in Indonesia, Malaysia, and Singapore

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Easy Transaction

Transactions can be done at any time

    Terms and Conditions

    Interest and Fee

    Other Information

    Disclaimer

Terms and Condition
  1. For 1st DCR KIKO transaction, customer must receive, understand and submit the following documents:
     
     • Call Report (of the meeting between customer and RM)
     
     • Risk Profile Questionnaire
     
     • Term and Condition of DCR Product
     
     • Product Highlight Sheet DCR
     
  2. The customer must submit a copy of his identity card and proof of asset ownership
     
  3. The customer must wait for a cooling off period of 3 working days after the customer receives and completes the document before making a DCR KIKO transaction for the first time. For subsequent placements, the customer will receive an indicative term sheet and only need to complete the Structured Product Placement Form (DCR KIKO Section) and proof of asset ownership
     
  4. Currency of DCR placement can only be done according to the currency available at Bank OCBC NISP

  5. IDR currency is not allowed for DCR KIKO placement
     
  6. Minimum placements:
     
     • Nominal transaction starts from USD 10.000 or equivalent (bookbuilding USD 25.000)
     
     • Individual customer must have liquid assets of IDR 5 billion or equivalent
Interest:
The rate of return paid is fixed in accordance with the term and condition stated in the contract for DCR KIKO transaction

Fee:
1. There is no fee for DCR KIKO placement.

2. If the KO value has not been touched, there will be a fee due to Early Termination from the agreed maturity date at the request of the Customer
Basically, disbursement of DCR KIKO before maturity Date, is not permitted. If disbursement of DCR KIKO before maturity Date, cannot be avoided, due to the Customer's request, the Customer is obliged to provide compensation to the Bank for any losses, costs, bills and or expenses that may occur as a result of the accelerated disbursement, including funding costs and losses or costs arising as a result of termination and remaking of related trading positions in full and will pay administrative fees and other bills that may be charged to the Bank (collectively referred to as "Prior Termination Fees")

Other Information
 
I. Product Description
 
Dual Currency Return - Knock In Knock Out (DCR - KIKO) is a combination of savings products and derivative products, in which the customer has the opportunity to obtain a higher rate of return than the usual Time Deposit, but does not provide 100% return protection on the principal value of the placement
 
DCR KIKO is a non-principle protected product that allows disbursement before maturity (T + 2) after the KO level is touched during the observation period

II. Product Simulation

In DCR KIKO, customers will get a premium every time they make a DCR KIKO transaction and allow withdrawals before maturity (T + 2) after the KO level is touched during the observation period
Conversion to alternative currencies will occur if all 3 of these things are fulfilled:
 1. KO level is never touched during the observation period.
 2. KI level has been touched during the observation period.
 3. At the hour and determination date, alternative currencies are weaker than the strike level
 
Example of DCR Transaction

Currency Pair AUD/USD
Transaction Date 5 March 2018
Placement Date 7 March 2018
Tenor 14 days
Determination Date 19 March 2018 (13.00 WIB)
Maturnity Date 21 March 2018
Deposit Currency USD
Alternatif Currency AUD
Nominal USD 100,000
Kurs Spot AUD/USD 0.7600
Strike Price 0.7600
Knock Out Price 0.7625
Knock In Price 0.7400
Premium Price 0.10% gross flat
Deposit DCR KIKO 1% p.a.gross

Scenario A:
If the spot rate touches KO (0.7625) on March 6, 2018, the DCR KIKO placement fund will be disbursed earlier than the maturity date, in base currency (USD), with the calculation as follows:
 • Paid on 7 March 2018: USD 100,00 X 0.1% X 80% = USD 80 (nett), and
 • Paid on 8 March 2018: USD 100,000 + ((USD 100,000 x 1.00%x (1/365) x 80%) = USD 100,002.19 nett
 
Scenario B:
If the spot rate has never touched KO (0.7625) and KI (0.7400) during the calculation period, the funds will be disbursed in the base currency (USD) with the following calculation:
 • Paid on 7 March 2018: USD 100,00 X 0.1% X 80% = USD 80 (nett), and
 • Paid on 21 March 2018: USD 100,000 + ((USD 100,000 x 1.00% x (14/365) x 80%) = USD 100,030.68 nett
 
Scenario C:
If the KO spot rate (0.7625) has never been touched, but the spot rate briefly touched KI (0.7400) during the calculation period, and on the determination date / time, the spot rate is lower than the strike (0.7390), the customer placement funds will be disbursed on maturity date and converted to alternative currencies (AUD), with the following calculation:
 
 • Paid on 7 March 2018: USD 100,00 X 0.10% X 80% = USD 80 (nett), and
 • Paid on 21 March 2018: USD 100,000 x 1.00% x (14/365) x 80% = USD 30.68 nett
 • Paid on 21 March 2018: USD 100,000 / 0.7600 = AUD 131,578.94
 
Scenario D:
If the spot rate KO (0.7625) has never been touched, but the spot rate touches KI (0.7400) during the calculation period, and at Fixing date and time the spot rate is in a position higher than the strike (0.7425), then the customer placement funds will be disbursed at maturity date in base currency (USD) with the following calculation:
 
 • Paid on 7 March 2018: USD 100,00 X 0.10% X 80% = USD 80 (nett), and
 • Paid on 21 March 2018: USD 100,000 + ((USD100,000 x 1.00% x (14/365) x 80%)= USD 100,030.68 nett
 
Scenario E:
If the spot rate hits KI (0.7400) first, then spot rate hits KO (0.7625) on March 12, 2018, the customer placement fund will be disbursed (T + 2) after the KO is touched, earlier than the original maturity date in USD, with the following calculation:
 
 • Paid on 7 March 18: USD 100,00 X 0.10% X 80% = USD 80 (nett), and
 • Paid on 14 March 2018: USD 100,000 + ((USD100,000 x 1.00% x (7/365) x 80%) = USD 100,015.34 nett

III. Risk of Product and Other Information
 
1. Market Risk
 
 • The possibility of the principal in the base currency to be converted to an alternative currency, which can cause a lower investment return (loss if the Customer's funds are converted into an alternative currency) and the customer decides to convert back to the base currency (base currency), then the customer principal placement will likely experience capital loss
 
 • If the Customer's funds after converting to alternative currencies and since then the exchange rate of the alternative currency chosen by the Customer continues to weaken, the Customer will experience a principal loss on the placement
 
2. Liquidity Risk
 
DCR KIKO cannot be disbursed by the customer before maturity. DCR KIKO can perform disbursement before maturity if the KO value is touched
 
3. Feature Risk
 
Customers' funds at maturity can be converted into alternative currencies, if the alternative currency at Fixing date and time is weaker than the previously agreed conversion rate, with the Knock-In (KI) exchange rate condition already touched
 
4. Other Risks:
 
 • DCR KIKO cannot be rolled over, so each placement is a new placement; and
 • DCR KIKO cannot be used as a credit guarantee

IV. Facility / Channel
 
Transactions can be done at all Bank OCBC NISP branch offices

V. Complaint Procedure
 
Customers can submit complaints related to products through:
 
 1. Call OCBC NISP at 1500 – 999 (domestic call) or 021-26506300 (overseas call)
 2. Contact Relationship Manager (RM)
 3. Email to callcenter@ocbcnisp.com
 4. Click www.ocbcnisp.com

1. You hereby acknowledge that you have read, received explanation and understood the product and/or service as specified in this Summary of Product and/or Service Information (“Summary”) and have informed, understood and accepted any consequences of product and/or service including all inherent benefits, risks and costs.

2. This Summary is intended only as an information and does not aim to be a basis for investment decisions. Past performance is not an indication of future performance. Any proposal documents for investment related products, must be studied further. Any projections, opinions or other statistical facts displayed in this information are only an indication and are not guaranteed in any form. You must determine your own decisions in accordance with the needs and investment strategies by considering legal, tax and accounting issues. Based on good intentions and moral responsibility, Bank OCBC NISP and each of its employees are not responsible for any direct or indirect losses, or as a consequence arising from the use of and dependence on this information in an investment decision.

3. Bank OCBC NISP reserves the right to reject your product and/or service application if it does not fulfil the requirements and the application of laws and regulations.

4. You have to carefully read this Summary and contact Bank OCBC NISP if there are further queries in respect of the product and/or service contained in this Summary.

5. This Summary has been adjusted to be in accordance with the provisions of regulations including the regulations of Financial Service Authority.


This Summary is made in English and Bahasa Indonesia, and in the event of inconsistency between the version, Bahasa Indonesia shall prevail.

PT Bank OCBC NISP Tbk terdaftar dan diawasi oleh OJK dan merupakan peserta penjamin LPS

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Popular questions about Dual Currency Return (DCR) – Knock In Knock Out (KIKO)

DCR KIKO is a non-principle protected product that allows disbursement before maturity (T + 2) after the KO level is touched during the observation period

 Transaction can be done at all OCBC NISP branch offices

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