Brunei issues $20m sukuk
Thursday, June 18, 2009
THE Ministry of Finance has announced the successful pricing of $20 million worth of short-term Sukuk Al-Ijarah securities or Islamic bonds.
In a statement dated June 11, the ministry said the 32nd issuance of Islamic bonds will carry a maturity of 91 days with a rental rate of 0.3 per cent and ends on September 10.
The statement was released to the media yesterday.
The latest issuance brings to over $1.6 billion the total sukuk issued by the Brunei Government since the Sukuk Al-Ijarah programme began in April 2006.
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 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.
Most governments that issue sovereign Islamic bonds do so to fill a gap in their funding for critical infrastructure projects.
In the case of Brunei, where the bulk of export receipts come from the oil and gas sector, the issuance is expected to set benchmarks on rental rates that prospect issuers in the private sector can use should they decide to raise money by selling bonds. Hadi DP Mahmud The Brunei Times
In a statement dated June 11, the ministry said the 32nd issuance of Islamic bonds will carry a maturity of 91 days with a rental rate of 0.3 per cent and ends on September 10.
The statement was released to the media yesterday.
The latest issuance brings to over $1.6 billion the total sukuk issued by the Brunei Government since the Sukuk Al-Ijarah programme began in April 2006.
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 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.
Most governments that issue sovereign Islamic bonds do so to fill a gap in their funding for critical infrastructure projects.
In the case of Brunei, where the bulk of export receipts come from the oil and gas sector, the issuance is expected to set benchmarks on rental rates that prospect issuers in the private sector can use should they decide to raise money by selling bonds. Hadi DP Mahmud The Brunei Times
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