AMBD brings total sukuk issuance to over $12 billion since 2006 following latest offering

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Fitri Shahminan

The Autoriti Monetari Brunei Darussalam (AMBD) has issued a $100 million-sukuk (Islamic bonds) at a rental rate of 1.3125 per cent.

In the latest statement published on their website, the sultanate’s central bank said the 160th sukuk issuance was made on August 9, 2018 and will mature on November 8, 2018, based on a 91-day tenor.

With the recent issuance, the Brunei government has issued over $12.16 billion worth of short-term Sukuk Al-Ijarah securities since its maiden offering on April 6, 2006. The total holdings of Brunei government sukuk outstanding until August 9, 2018 stands at $332.4 million.

The AMBD acts as the government’s managing and administering agent for the sukuk issuance.

Local online news outlet The Scoop reported in March that the central bank’s new headquarters, slated to finish construction by early 2020, is one of the first infrastructure projects in Brunei that will be funded by sukuk offerings.

The report added that the offerings are part of the sultanate’s plans to develop its financial sector by diversifying public and private sector financing.

Islamic bonds are syariah-compliant financing products structured as profit-sharing or rental agreements underpinned by physical assets.

The Bruneian