Brunei issues $25m sukuk

THE Ministry of Finance has announced the successful pricing of $25 million worth of sukuk securities.

In a statement dated April 9 and released yesterday, the ministry announced the successful pricing of the 28th issuance of the Sukuk Al-Ijarah Securities, which will carry a maturity of 91 days ending on July 9.

The latest issuance of the securities have a rental rate of 0.30 per cent.

On April 23, the government issued $30 million (US$16.6 million) of 91-day Islamic bonds at a rental rate of 0.30 per cent.

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

The Sultanate through the ministry issues Islamic securities under a lease arrangement with the government. The Sukuk Holding Properties Inc and Sukuk (Brunei) Inc were set up by the ministry and registered under the International Business Companies Order 2000 to act as conduits to issue sukuk. The Brunei Times