BULL by ktixcqlmc

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									                 BULL EQUITY-LINKED
               INVESTMENT (“Bull ELI”)




Strictly Private & Confidential




                                     Issuer   Arranger   Calculation Agent   Manager
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




1                           Strictly Private & Confidential
TABLE OF CONTENTS



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


       ELI

2                   Strictly Private & Confidential
    INTRODUCTION

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

        Bull ELI is marketed to Investors who want to:
    2   (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
    3   Reference Asset, value of which may go below the purchase price i.e. Strike Price.

        Bull ELI is an investment product that uses a publicly referable stock market index, an
    4   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.

        The tenure of Bull ELI is between one (1) and six (6) months.
    5

3                                       Strictly Private & Confidential
    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 < 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

4                                            Strictly Private & Confidential
    KEY FEATURES
    Trade / Settlement Timeline

                                                                       Earns Yield from Bull
                                                                      ELI i.e. 5% to 10% p.a.



                                                                      Reference Asset Price 
                                                                        Strike Price, Investor     The Issuer will settle
                                                                            receives cash.       Investor’s trade either by
                                                                      Reference Asset Price <      cash payment or pre-
                                                                        Strike Price, Investor    agreed numbers of the
            Investor                                                  receives numbers of the      Underlying Reference
            buys Bull                    Investor pays for Bull        Underlying Reference                Asset
              ELI                                 ELI                           Asset




           TRADE                              PAYMENT                       MATURITY                  FINAL
            DATE                                DATE                          DATE                 SETTLEMENT
                                                                                                      DATE
                         The Issuer issues Trade
                         Confirmation to Investor
                    confirming that the Issuer has
                     filled orders. No cancellation
                     shall occur upon issuance of
                           Trade Confirmation.


5                                                Strictly Private & Confidential
    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.




6                                       Strictly Private & Confidential
    PROCEDURES (...Trade Date)

     1. The Issuer issues Bull ELI at a                        Example: The investor wishes to buy RM320,000 worth of Air Asia
        discount to its Investment                             shares at RM1.55 per share. However, the Initial Reference Asset
                                                               Price of ABC share is RM1.59 per share.
        Amount to Investor. Strike Price
        and Payment Date shall be pre-                         The Issuer can offer the investor a six-month Bull ELI at a Strike
        agreed between Investor and                            Price of RM1.51 per share (5% from the Initial Reference Asset i.e.
        the Issuer and the pre-                                RM1.59) for an Investment Amount of RM300,000.
        determined quantity of the
        Underlying Reference Asset in
        Bull ELI (“Shares/ Indices
        Amount”) is calculated based on                             INVESTOR                                    ISSUER
        Investment Amount divided by
        Strike Price.

     2. Selling Agents needs to fill up
        Purchase Order Form.                                 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

7                                             Strictly Private & Confidential
    PROCEDURES (...Payment Date)

     2. Investor will pay the Issuer the                            On Payment Date, the investor only pays the Issuer
         Subscription Amount, which is                              the Subscription Amount i.e. the discounted
                                                                    Investment Amount and not the entire price of the
         at a discount to the Investment                            Investment Amount. The Subscription Amount is
         Amount of Bull ELI on                                      98.40% of the Investment Amount i.e. 98.40% x
         Payment Date. Payment Date                                 RM300,000 = RM295,200.
         is    a    pre-agreed      date
         determined by the Issuer and
         the Investor on Trade Date.
                                                                   INVESTOR                              ISSUER




     Trade Date                 Payment Date                             Maturity Date         Final Settlement Date
8                                              Strictly Private & Confidential
    PROCEDURES (...Maturity Date)
    Scenario A
    (Reference Asset Price  Strike Price)                                                     Cash
    If Reference Asset Price of the Underlying                             INVESTOR                            ISSUER
    Reference Asset determined on Maturity Date
    of Bull ELI EQUALS TO OR EXCEEDS Strike
    Price, Investor shall receive in cash, the                    1) The Reference Asset Price is RM1.53, which is above the
    redemption proceeds which is the Investment                      Strike Price. The investor receives cash payment amount of
                                                                     RM300,000 on Final Settlement Date.
    Amount on Final Settlement Date.
                                                                  2) 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 < Strike Price)
    If Reference Asset Price of the Underlying                                                   Shares
    Reference Asset determined on Maturity Date                             INVESTOR                            ISSUER
    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
                                                                     If the Reference Asset Price on Maturity Date is RM1.48 which
    follows:                                                         is below the Strike Price, the investor shall receive RM300,000/
             Investment Amount of Bull ELI                           RM1.51 = 198,675.50 shares as the redemption amount.
                     Strike Price




      Trade Date                 Payment Date                             Maturity Date           Final Settlement Date
9                                               Strictly Private & Confidential
           PROCEDURES (...Final Settlement Date)


     Scenario A                                            Scenario B
     (Reference Asset Price  Strike Price)                (Reference Asset Price < Strike Price)

     Receives Cash                                         Receives Underlying Reference Asset. For odd
                                                           lots, it shall be settled in cash


     Example: The Issuer delivers RM300,000 in             Example: The investor shall receive 198,675.50 shares as the
     cash to the investor.                                 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.



     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.




     Trade Date                 Payment Date                               Maturity Date         Final Settlement Date
10                                               Strictly Private & Confidential
 TRADE EXAMPLE

     TRADE DATE (T)

     Underlying Reference Asset      :             AIRASIA BHD
     Initial Reference Asset Price   :             RM1.59
     Investment Amount               :             RM300,000
     Strike Price                    :             RM1.51 @ 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




11                                       Strictly Private & Confidential
 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 < 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


12                                            Strictly Private & Confidential
 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 < 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




13                                            Strictly Private & Confidential
 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
     Trade Date                     Payment Date of                             Maturity Date     Settlement
      Bull ELI                         Bull ELI                                  of Bull ELI      Date of Bull
                                                                                                      ELI

14                                            Strictly Private & Confidential
 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.




15                                           Strictly Private & Confidential
 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
                         1. Earns FD yield (3% p.a.)
                         2. Leaves order with stockbroker to buy RM300,000 AirAsia shares
                             at RM1.51 per share.
     Buying
     Strategy
                          Bull ELI
                          1. Earns FD yield (3% p.a.) before Payment Date
                          2. 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.



16                                     Strictly Private & Confidential
 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



17                                       Strictly Private & Confidential
 PRICE QUOTES

     Last updated:          04-01-06

                                                                                            Final
               Underlying              Min. Trading              Payment      Maturity    Settlement    Holding   Strike    Offer   Annualised
     Ref       Security     Currency       Size     Trade Date    Date         Date         Date         Days     Price     Price     Yield

     T-00001   Tenaga        MYR           50,000    03-Jan-06   05-Feb-06    25-Feb-06    02-Mar-06        25    95.00%    99.2%      11.77%
     A-00001   Air Asia      MYR           50,000    03-Jan-06   03-May-06    29-Jun-06     04-Jul-06       62    95.00%    98.4%       9.57%




                                            Number of days
                                           between Payment
                                             Date and Final
                                            Settlement Date
Selling Agents                                   (“FSD”)                                     Amount to be paid by
will need to quote                                                                           Investor to the Issuer
the reference                                                                                 on Payment Date =
code first when                                                                                   98.4% of the
                                               95% of Initial
calling Equity                                                                                Investment Amount
                                            Reference Asset
Derivatives Unit                                                                               (e.g. RM295,200)
                                           Price determined on
                                                Trade Date
                                               (eg. RM1.51)

                                                                                          100% - Issue Price X                365
                                                                                             Issue Price                   FSD – Payment Date




18                                                     Strictly Private & Confidential
 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




19                           Strictly Private & Confidential
                 CONTACT PERSONS
                                      EQUITY MARKETS & DERIVATIVES

                                                                                           Megan Chong
                                   Kok Kong Chin
                                         Head                                                Secretary
                                 Tel : 03 - 2084 8633                                    Tel: 03 - 2084 8632



                                     Lim Jong Hau                                         Fauziah Apandi
                                        Director                                             Secretary
                                   Tel: 03 - 2084 8942                                   Tel: 03 - 2084 8888


                                      Larry Ch’ng
                                   Assistant Director
                                   Tel: 03 - 2084 9622
                                Email: larry@cimb.com.my




            Murni Azmi                                                  Eunice Saw

             Associate                                                  Associate
         Tel: 03 - 2084 9272                                       Tel: 03 - 2084 9636
     Email: murni@cimb.com.my                            Email: eunicesaw@cimb.com.my

20                                    Strictly Private & Confidential
 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.




21                                                       Strictly Private & Confidential

								
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