The latest issuance brings to over $3.651 billion the total sukuk issued by the Brunei Government since the Sukuk Al-Ijazah programme began in April 2006. AMBD is the managing and administering agent for Sukuk Al-Ijarah issuances.
In a statement released yesterday, AMBD announced the successful pricing of the 68th issuance of the Sukuk Al-Ijarah Securities, which will carry a maturity of 91 days ending on March 8 next year.
The latest issuance of the securities have a rental rate of 0.17 per cent. 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.
In a previous interview with The Brunei Times, 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