Islamic securities

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Brunei Government Sukuk Al-Ijarah

The Brunei Darussalam Central Bank, as the agent to the Government of His Majesty the Sultan and Yang Di-Pertuan of Brunei Darussalam, is responsible for the management and administration of the Brunei Darussalam Government Sukuk Al-Ijarah issuances. This programme aims to provide a safe and liquid investment instrument for domestic financial institutions and develop the Brunei Darussalam Government securities yield curve as a benchmark for corporate sukuk.

The first Brunei Government Sukuk Al-Ijarah was issued on 6 April 2006. Since the inception of this programme, the Brunei Darussalam Government has issued a total of 226 issuances of Sukuk Al-Ijarah securities, with maturities of three months, one year, three years, five years, seven years, and ten years.

Highlights (Q4 2024)

Islamic pattern

242

Sukuk issued
Financial Growth Concept With Trees Stacked Coins Graph Arrow Investment Saving 1

BND 17.40B

Sukuk issued
Businessmen Elegant Suits Business Meeting Discussing New Project Office 1

BND 321.35M

Outstanding Sukuk

Growth of Brunei Government Sukuk Al-Ijarah

The first Brunei Government Sukuk Al-Ijarah was issued on 6 April 2006. Since the inception of this programme, the Brunei Darussalam Government has issued a total of 226 issuances of Sukuk Al-Ijarah securities, with maturities of three months, one year, three years, five years, seven years, and ten years.

BDCB Islamic Bills (I-Bills)

Towards achieving monetary stability, the Central Bank also conducts monetary operations through the issuance of BDCB Islamic Bills (I-Bills) and Overnight Standing Facilities (OSF) to ensure sufficient liquidity for the smooth functioning of the domestic banking system. The design of these instruments and operations, in relation to its framework, are strictly aligned with the Currency Board principles. 

 

As part of the Central Bank’s continued efforts to develop a more efficient money market for Brunei Darussalam, the Central Bank successfully launched the two-week BDCB I-Bills on 22 October 2020 which is based on the Syariah concept of Wakalah bil Ujrah. The BDCB I-Bills aim to support liquidity management for the banks and the Islamic trust fund as primary investors and simultaneously expand the list of money market instruments available to BDCB and the domestic financial sector. 

 

To provide banks with wider liquidity management options, BDCB introduced a 4-week tenor, in addition to the 2-week, beginning January 2025. With the introduction of the 4-week tenor, BDCB will be issuing the 2-week tenor every fortnight and the 4-week tenor every four weeks.

Highlights (Q4 2024)

Islamic pattern

203

Sukuk issued
Financial Growth Concept With Trees Stacked Coins Graph Arrow Investment Saving 1

BND 5.55B

Sukuk issued
Businessmen Elegant Suits Business Meeting Discussing New Project Office 1

BND 97M

Outstanding Sukuk

BDCB Islamic Bills (I-Bills)

Islamic Pattern

Overnight Standing Facilities (OSF)

Close Up Digital Tablet Meeting 1

The OSF are fundamental tools for effective and efficient liquidity management for the banks. The OSF consists of Syariah-Compliant Funding and Acceptance Facilities, as well as Conventional Lending and Deposit Facilities. The Funding and Lending Facilities allow banks to obtain Brunei Dollars from the Central Bank, against sufficient eligible collateral on an overnight basis. Meanwhile, the Acceptance and Deposit Facilities allow banks to place excess deposits in Brunei Dollars with the Central Bank on an overnight basis. The Lending and Deposit Rates, which also aim to facilitate money market development and reduce arbitrage, are determined by the Financial and Monetary Stability Committee (FMSC).

Brunei Government Sukuk Al-Ijarah and BDCB I-Bills are eligible collaterals for BDCB Lending/Funding Facility under the OSF, which allows banks to borrow in Brunei Dollars from the Central Bank.