MTB-i is an Islamic short-term instrument issued by the Malaysian Government with maturities not exceeding one year. The issuance of MTB-i is based on the principle of bai’ inah. In the primary issue, submission of tenders for MTB-i is conducted through the Islamic banks and Principal Dealers. The tender is based on the exact purchase price (proceeds) basis.
MTB-i is traded based on the principle of bai’ dayn. The secondary market trading of MTB-i is quoted in terms of discount rate. The formula and computation of proceeds is based on the discounted formula similar to the BNMN-i.