A man walks past an AMBD Gallery signage. Image: Ridhwan Kamarulzaman

The Autoriti Monetari Brunei Darussalam (AMBD) has issued a $100 million-sukuk (Islamic bonds) at a rental rate of 1.5625 percent.

The sultanate’s central bank in a statement recently said the 165nd sukuk issuance was made on January 10, 2019 and will mature on April 11, 2019, based on a 91-day tenor.

With the recent issuance, the Brunei government has issued over $12.51 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 as of January 10, 2019 stands at $347.5 million.

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

It was previously reported in March that the monetary authority’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 | BANDAR SERI BEGAWAN

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