Brunei prices sukuk issuance at 0.16%

BRUNEI has priced its 80th issuance of short-term Islamic bonds, or sukuk, at a rental rate of 0.16 per cent, to bring its total issuance so far to $4.85 billion dollars, the Autoriti Monetari Brunei Darussalam (AMBD) said yesterday.

The US$100 million 90-day issuance matures in January.

AMBD, a statutory body acting as the country's central bank, launched its first issuance in 2006.

With strong reserves, Brunei does not need to issue bonds but the continuous issuance of sovereign bonds has helped to establish a benchmark rate as well as absorb some excess liquidity within the banking sector. Reuters