BULL EQUITYLINKED INVESTMENT Bull ELI

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BULL EQUITY-LINKED INVESTMENT (Bull ELI)

• Issuer

Arranger Calculation Agent Manager
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RISK STATEMENT
WARNING THIS IS A STRUCTURED PRODUCT. THIS
INVESTMENT IS LINKED TO THE PERFORMANCE OF ONE OR
MORE MARKET PRICES, RATES, INDICES, SECURITIES
AND OTHER FINANCIAL INSTRUMENTS THAT
INTRODUCE SIGNIFICANT RISK THAT WILL AFFECT THE
PERFORMANCE OF THIS INVESTMENT
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TABLE OF CONTENTS

• Introduction
• Key Features
• General Terms
• Trading/Settlement Timeline
• Procedures
• Trade Example
• Benefits
• Potential Investors
• Price Quotes
• Risk Statement
• Contact Persons

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INTRODUCTION

• Bull ELI is a structured product issued by
  Bumiputra-Commerce Bank Berhad (the Issuer).
  The arranger, calculation agent and manager of
  Bull ELI is Commerce International Merchant
  Bankers Berhad (CIMB).

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Bull ELI is marketed to Investors who want
to (a) earn higher interest rates (5 to 10)
than the rates of ordinary time deposits and/or
(b) buy Underlying Reference Asset at a cheaper
price (5 lower from the prevailing market
price). However, investors have to accept the
risk of repayment in the form of the Underlying
Reference Asset, value of which may go below the
purchase price i.e. Strike Price.
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• Bull ELI is an investment product that uses a
  publicly referable stock market index, an
  individual security or a basket of securities as
  the Underlying Reference Asset. The Underlying
  Reference Asset will comprise selected stocks on
  the Kuala Lumpur Composite Index or foreign
  indices.

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• The tenure of Bull ELI is between one (1) and six
  (6) months.

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KEY FEATURES
General Terms

Issuer

BCB
Underlying Reference Asset

AirAsia Bhd
Trade Date

3-Jan-06
Payment Date

3-May-06
Maturity Date

29-Jun-06
Final Settlement Date

4-Jul-06
Initial Reference Asset Price

RM1.590
Strike Price

RM1.510
Issue Price

98.4 of Investment Amount i.e. RM295,200
Reference Asset Price (RM)

RM1.48 on Maturity Date
Yield to Maturity

9.57 per annum
Investment Amount

300,000
Shares/ Indices Amount

Investment Amount divided by Strike Price
198,675.50
shares in Underlying Reference Asset
Reference Asset Price ? Strike Price at maturity
Redemption Amount

Redemption Amount Investment Amount RM300,000
Reference Asset Price lt Strike Price at maturity
Redemption Amount is as follows
i. Shares in Underlying Reference Asset 198,600
ii. Cash 75.50 shares x RM1.48 i.e. RM111.74
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KEY FEATURES
Trade / Settlement Timeline
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PROCEDURES (...before executing Bull ELI)
Selling Agents need to perform the following a.
To ascertain the eligible amount for Investor to
subscribe for Bull ELI (please refer to
Potential Investors) b. Investor needs to
open i. Stock Trading Account with CIMSEC
Nominees and ii. Savings account with the
Issuer.
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PROCEDURES (...Trade Date)

• The Issuer issues Bull ELI at a discount to its
  Investment Amount to Investor. Strike Price and
  Payment Date shall be pre-agreed between Investor
  and the Issuer and the pre-determined quantity of
  the Underlying Reference Asset in Bull ELI
  (Shares/ Indices Amount) is calculated based on
  Investment Amount divided by Strike Price.
• Selling Agents needs to fill up Purchase Order
  Form.

Example The investor wishes to buy RM320,000
worth of Air Asia shares at RM1.55 per share.
However, the Initial Reference Asset Price of
ABC share is RM1.59 per share. The Issuer can
offer the investor a six-month Bull ELI at a
Strike Price of RM1.51 per share (5 from the
Initial Reference Asset i.e. RM1.59) for an
Investment Amount of RM300,000.
Upon completion of the order, the Issuer will
issue a trade confirmation to Investor confirming
the orders filled for the day.
Trade Date
Payment Date
Maturity Date
Final Settlement Date
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PROCEDURES (...Payment Date)
2. Investor will pay the Issuer the Subscription
Amount, which is at a discount to the Investment
Amount of Bull ELI on Payment Date. Payment Date
is a pre-agreed date determined by the Issuer and
the Investor on Trade Date.
On Payment Date, the investor only pays the
Issuer the Subscription Amount i.e. the
discounted Investment Amount and not the entire
price of the Investment Amount. The Subscription
Amount is 98.40 of the Investment Amount i.e.
98.40 x RM300,000 RM295,200.
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PROCEDURES (...Maturity Date)
Scenario A (Reference Asset Price ? Strike Price)
If Reference Asset Price of the Underlying
Reference Asset determined on Maturity Date of
Bull ELI EQUALS TO OR EXCEEDS Strike Price,
Investor shall receive in cash, the redemption
proceeds which is the Investment Amount on Final
Settlement Date.

• The Reference Asset Price is RM1.53, which is
  above the Strike Price. The investor receives
  cash payment amount of RM300,000 on Final
  Settlement Date.
• The Reference Asset Price is RM1.51, which is
  equivalent to the Strike Price. The investor
  receives cash payment amount of RM300,000 on
  Final Settlement Date.

Scenario B (Reference Asset Price lt Strike
Price) If Reference Asset Price of the Underlying
Reference Asset determined on Maturity Date is
BELOW Strike Price, Investor shall receive the
Shares/ Indices Amount on Final Settlement Date.
The method used to calculate the Shares/ Indices
Amount is as follows Investment Amount of Bull
ELI Strike Price
If the Reference Asset Price on Maturity Date is
RM1.48 which is below the Strike Price, the
investor shall receive RM300,000/ RM1.51
198,675.50 shares as the redemption amount.
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PROCEDURES (...Final Settlement Date)
Scenario B (Reference Asset Price lt Strike
Price) Receives Underlying Reference Asset. For
odd lots, it shall be settled in cash
Scenario A (Reference Asset Price ? Strike Price)
Receives Cash
Example The investor shall receive 198,675.50
shares as the redemption amount. The Issuer shall
deliver to the investor 198,600 shares and for
the odd lots, it shall be paid in cash to the
investor i.e. 75.50 shares x RM1.48 (Reference
Asset Price on Maturity Date) RM111.74.
Example The Issuer delivers RM300,000 in cash to
the investor.
NOTE Final Settlement Date shall be Maturity
Date 5 Market Days Example Maturity Date
falls on 7th April 2006, which is a Friday.
Therefore, the Final Settlement Date shall be on
14th April 2006.
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TRADE EXAMPLE

• TRADE DATE (T)
• Underlying Reference Asset AIRASIA BHD
• Initial Reference Asset Price RM1.59
• Investment Amount RM300,000
• Strike Price RM1.51 _at_ 5 discount from RM1.59
• Issue Price 98.40 of the Investment Amount
• Subscription Amount Discounted Investment
  Amount 98.40 x RM300,000 RM295,200
• PAYMENT DATE (T 120 Calendar days)
• (Investor to pay the Issuer)
• Subscription Amount Discounted Investment
  Amount
• 98.40 x RM300,000 RM295,200

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TRADE EXAMPLE

• MATURITY DATE (T 177 Calendar Days)
• Scenario A
• (Reference Asset Price Strike Price)
• Reference Asset Price RM1.53
• Strike Price RM1.51
• Cash to be delivered to Investor 100 of
  Investment Amount RM300,000
• Scenario B
• (Reference Asset Price lt Strike Price)
• Reference Asset Price RM1.48
• Strike Price RM1.51
• Shares/ Indices Amount Investment Amount
  RM300,000
• (Shares to be delivered to Investor)
  Strike Price RM1.51
• 198,675.50 shares

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TRADE EXAMPLE

• FINAL SETTLEMENT DATE (T 182 Calendar Days)
• Scenario A
• (Reference Asset Price ? Strike Price)
• The Issuer delivers RM300,000 in cash to Investor
• Scenario B
• (Reference Asset Price lt Strike Price)
• Total Shares to be delivered to Investor is
  198,675.50 shares
• a) Physical Delivery The Issuer delivers 198,600
  shares to Investor
• b) Cash Delivery The Issuer delivers odd lots in
  cash to Investor
• Number of odd lots x Reference Asset Price
  on Maturity Date
• 75.50 shares x RM1.48
• RM111.74

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TRADE EXAMPLE

• ANNUALISED YIELD/ TOTAL RETURN ON BULL ELI
• 100 - Issue Price_ x
  365_______________
• Issue Price
  Final Settlement Date Payment Date
• 100 - 98.40 x 365
• 98.40 62
• 9.57

Earning yields from Bull ELI i.e. 9.57 p.a.
Final Settlement Date of Bull ELI
Trade Date Bull ELI
Payment Date of Bull ELI
Maturity Date of Bull ELI
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BENEFITS

• Investors earn higher yield than ordinary time
  deposit.
• Fixed Deposit In general, a one-month to a
  six-month Fixed Deposit rate is approximately 3
  p.a.
• Bull ELI Depending on the Underlying Reference
  Asset, a one-month to a six-month Bull ELI yields
  between 5 and 10 p.a.
• Bull ELI is a short-term investment, i.e. less
  than 6 months
• Investor subscribes BULL ELI at a discount to the
  Investment Amount
• Investor pays for Bull ELI at a later date i.e.
  Payment Date and not on Trade Date.

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BENEFITS

• An alternative buying strategy for investors who
  want to buy Underlying Reference Asset at a
  cheaper price i.e. 5 below prevailing market
  price on Trade Date.

Example An investor wants to buy RM300,000 of
AirAsia shares at RM1.51. However, the initial
reference asset price is RM1.59.

• Conventional Strategy
• Earns FD yield (3 p.a.)
• Leaves order with stockbroker to buy RM300,000
  AirAsia shares at RM1.51 per share.

Buying Strategy

• Bull ELI
• Earns FD yield (3 p.a.) before Payment Date
• Buys Bull ELI with strike price at RM1.51.
• ? Earns Bull ELI yield of 9.57 p.a.
• If on maturity, the AirAsia share price
  is below the strike price i.e. RM1.51, Investor
  will get to buy AirAsia shares at RM1.51 per
  share.

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POTENTIAL INVESTORS

• Individual and/or corporation whose total net
  personal assets/ net assets are as set out under
  items 10 and 11 of Schedule 2 and 3 of Securities
  Commission Act 1993, respectively. The minimum
  transaction for each Bull ELI is RM50,000

• For Individual and/or corporation who does not
  fall within items 10 and 11 of Schedule 2 and 3
  of the SCA 1993, the minimum transaction amount
  for each Bull ELI is RM250,000

• Investors like a particular stock/index and
  anticipate the market price of the stock/index
  to be steady, if not slightly bullish

• Investors who wish to earn high yield while
  waiting to buy at a cheaper level on Maturity Date

• Investors who traditionally are fixed depositors
  and are conservative. The particular stocks
  selected by investors are stock of their choice

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PRICE QUOTES
Number of days between Payment Date and Final
Settlement Date (FSD)
Amount to be paid by Investor to the Issuer on
Payment Date 98.4 of the Investment
Amount (e.g. RM295,200)
Selling Agents will need to quote the reference
code first when calling Equity Derivatives Unit
95 of Initial Reference Asset Price determined
on Trade Date (eg. RM1.51)
100 - Issue Price X
365 Issue Price FSD
Payment Date
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RISK STATEMENT
WARNING THIS IS A STRUCTURED PRODUCT. THIS
INVESTMENT IS LINKED TO THE PERFORMANCE OF ONE OR
MORE MARKET PRICES, RATES, INDICES, SECURITIES
AND OTHER FINANCIAL INSTRUMENTS THAT
INTRODUCE SIGNIFICANT RISK THAT WILL AFFECT THE
PERFORMANCE OF THIS INVESTMENT
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CONTACT PERSONS
EQUITY MARKETS DERIVATIVES
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IMPORTANT NOTICE

• This presentation has been prepared by Commerce
  International Merchant Bankers Berhad (CIMB)
  exclusively for the benefit and internal use of
  investor in order to indicate, on a preliminary
  basis, the feasibility of possible transactions.
  Terms contained in this presentation are intended
  for discussion purposes only and are subject to a
  definitive agreement. All information contained
  in this presentation belongs to CIMB and may not
  be copied, distributed or otherwise disseminated
  in whole or in part without the written consent
  of CIMB.
• This presentation has been prepared on the basis
  of information that is believed to be correct at
  the time the presentation was prepared, but that
  may not have been independently verified. makes
  no express or implied warranty as to the accuracy
  or completeness of any such information.
• CIMB is not acting as an advisor or agent to any
  person to whom this presentation is directed.
  Such persons must make their own independent
  assessment of the contents of this presentation,
  should not treat such content as advice relating
  to legal, accounting, taxation or investment
  matters and should consult their own advisers.
• CIMB or its affiliates may act as a principal or
  agent in any transaction contemplated by this
  presentation, or any other transaction connected
  with any such transaction, and may as a result
  earn brokerage, commission or other income.
  Nothing in this presentation is intended to be,
  or should be construed as an offer to buy or
  sell, or invitation to subscribe for, any
  securities.
• Neither CIMB nor any of its their directors,
  employees or representatives are to have any
  liability (including liability to any person by
  reason of negligence or negligent misstatement)
  from any statement, opinion, information or
  matter (express or implied) arising out of,
  contained in or derived from or any omission from
  the presentation, except liability under statute
  that cannot be excluded.

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