Friday, November 11, 2011

BRUNEI - CAPITAL MARKETS - Brunei raises $691m from nine sukuk issuances

THE Autoriti Monetari Brunei Darussalam (AMBD) has raised $691 million from nine syariah-compliant bond issuances, a statement from the monetary authority said.

AMBD said that it has floated sukuk nine times between April 21 and October 13 this year.

AMBD is the managing and administering agent for Sukuk Al-Ijarah issuances.  (source)


The nine sukuk issuances from April 21 2011 to October 13, 2011 carried a rental rate of between 0.10 per cent and 0.35 per cent, the statement said. All but one of the issuances carried 91-day tenors, while one was set to mature a year after the issuance."With this issuance, the Brunei Government has thus far issued over $3.35 billion worth of short-term Sukuk Al-Ijarah securities since its maiden offering on April 6, 2006," the statement said.

Brunei has long desired to be a sukuk hub for the region, and with more than 40 per cent of the country's population using Islamic banking, many have said that the Sultanate is in good position to do so.

Kuala Lumpur based Arsalaan "Oz" Ahmed, associate director of HSBC Amanah's Wholesale Banking, said that in terms of Islamic Finance, "Brunei is a speed boat while other economies are like oil tankers", referring to the Sultanate's ability to move faster than any other country if it desires to, putting the country in a prime position to be the industry leader. "Other economies compared to Brunei, can move and make waves, but their movement will be slower because of the size of their economy, what they have to integrate to make sure things go accordingly, and so on," Arsalaan had said.

Islamic bonds do not pay interest, which is banned as usury under Islamic law, and are structured as profit-sharing or rental agreements underpinned by physical assets. The Brunei Times

Source : http://www.bt.com.bn/business-national/2011/11/03/brunei-raises-691m-nine-sukuk-issuances  - Nov 3, 2011

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