PHOTO: BIBD

Bank Islam Brunei Darussalam Berhad (BIBD) has successfully completed its inaugural BND167.355 million three-year Sukuk Wakalah issuance under its BND200 million Sukuk Wakalah Programme, marking a significant milestone in the Bank’s funding diversification strategy and the continued development of Brunei Darussalam’s domestic Islamic capital market.

The issuance, undertaken through Arrow Sukuk Limited, represents Brunei Darussalam’s first corporate Sukuk Wakalah issuance and demonstrates the potential of the domestic capital market to mobilise institutional and individual investor participation in support of corporate funding requirements.

The transaction attracted a total order book of BND187.36 million, supporting a final issue size of BND167.355 million. The Sukuk was priced at par with semi-annual periodic distributions of 2.71 per cent per annum, with a three-year tenor and semi-annual profit distributions. Settled on November 10, 2026, the Sukuk will mature on November 10, 2029.

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BIBD Securities Sdn Bhd (BIBDS), the Bank’s wholly owned subsidiary and capital markets arm, acted as Lead Arranger and Lead Manager for the transaction.

The successful issuance marks an important step in establishing corporate Sukuk as a viable domestic funding instrument, while creating new opportunities for investors to participate in Brunei Darussalam’s developing Islamic capital market. The strong support received from institutional and retail investors underscores the important role of domestic investors in the success of this inaugural issuance.

An important feature of the inaugural issuance is the inclusion of eligible retail investors through BIBDS’ Fractional Sukuk Offering, enabling participation from a minimum investment of BND5,000.

The offering broadens access to a Shariah-compliant corporate investment instrument that has traditionally been more accessible to institutional investors and investors with larger investment amounts.

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By making Sukuk available in smaller investment denominations, BIBD and BIBDS are helping expand the range of investment opportunities available to individual investors, providing greater choice beyond traditional savings and deposit products.

The strong retail take-up reflects the confidence and support shown by Bruneian investors, whose participation has contributed to the success of this inaugural issuance. BIBD and BIBDS are grateful for the trust placed in them by investors and customers, whose support is instrumental in advancing the development of the domestic Islamic capital market.

The Sukuk offers on a semi-annual basis over its three-year tenor, subject to the applicable terms and associated investment risks. It provides eligible investors with an additional instrument to consider as part of their broader investment portfolios, according to their individual financial objectives and risk appetite.

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The retail offering also reflects BIBD’s commitment to promoting more inclusive participation in Brunei Darussalam’s capital market, ensuring that opportunities arising from financial sector development can reach a wider segment of the investing public. Reflecting the spirit of “By Bruneians, For Bruneians”, the initiative provides local investors with greater opportunities to participate in a domestically issued, Shariah-compliant investment product and benefit from the continued development of Brunei Darussalam’s capital market.

Recognising that greater access must be accompanied by informed decision-making, BIBD and BIBDS conducted investor forums, public roadshows and institutional engagements ahead of the issuance.

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These engagements provided prospective investors with information on the Sukuk’s structure, features, investment process, potential returns and associated risks, supporting greater financial literacy and responsible investment participation.

The inaugural Sukuk Wakalah issuance demonstrates the capacity of Brunei Darussalam’s domestic investor base to support corporate fundraising through Shariah-compliant capital market instruments. Participation from both institutional and retail investors highlights the role of the domestic capital market in mobilising local liquidity to meet corporate funding needs and broadening access to Shariah-compliant investment opportunities.

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BIBD extends its sincere appreciation to the domestic institutional and retail investors who supported the issuance. Their participation contributed to the success of this inaugural transaction and provides a practical example for other issuers looking to raise funds in Brunei Darussalam’s capital market.

The pricing achieved also highlights the potential for domestic Sukuk issuance to provide a competitive funding alternative alongside traditional banking facilities, enabling potential issuers to diversify their sources of funding.

For BIBD, the Sukuk Wakalah Programme represents an important development in its funding strategy, providing an additional avenue to diversify its funding base, strengthen its longer-term funding profile and support future funding requirements.

Beyond the Bank’s own funding objectives, the transaction establishes an initial domestic corporate Sukuk pricing reference and an execution precedent that prospective issuers can consider when evaluating capital market financing.

The successful completion of BIBD’s inaugural Sukuk Wakalah issuance represents an important development for Brunei Darussalam’s domestic capital market.

As the country’s first corporate Sukuk Wakalah issuance, the transaction provides a practical reference for how local companies can access capital market funding through a structured Shariah-compliant instrument.

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The issuance also demonstrates the importance of bringing together issuers, arrangers, advisers, regulators and investors to establish the necessary market capabilities, distribution channels and operational arrangements to support corporate Sukuk transactions.

These foundations are important in encouraging greater corporate participation in the capital market and expanding financing options available to businesses beyond traditional bank financing.

A broader pipeline of corporate Sukuk issuances could contribute to the development of a deeper and more diversified domestic capital market, offering businesses greater flexibility in meeting their funding requirements while providing investors with a wider selection of Shariah-compliant investment instruments. The experience and capabilities established through this transaction provide a foundation for subsequent issuances and greater participation in the domestic Sukuk market.

In this regard, BIBD’s inaugural issuance serves not only as a funding transaction, but also as a practical demonstration of the market infrastructure, expertise and investor participation required to support future corporate issuances.

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The transaction further reflects the growing capabilities of Bruneian financial professionals in structuring, arranging and executing Islamic capital market transactions, contributing to the continued development of local expertise and institutional capacity.

As a first-of-its-kind initiative, the project gave the team the opportunity to develop new skills, gain valuable experience and work together in an area that remains relatively new within the local market.  Beyond the issuance itself, the experience has helped strengthen local expertise in Islamic capital markets while building knowledge and practical experience that can support future transactions and further market development.

More importantly, the achievement highlights the capability of Bruneian talent to deliver complex and innovative projects of national significance, demonstrating the depth of local expertise and the growing capacity to lead new areas of development for the country.

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The BIBD Sukuk Wakalah Programme was officially launched jointly by Yang Berhormat Dato Seri Setia Dr Haji Abdul Manaf bin Haji Metussin, Coordinating Minister for Economic Policies and Minister of Economy, Trade and Industry and Chairman of Brunei Darussalam Central Bank (BDCB), and Yang Berhormat Dato Seri Setia Awang Haji Ahmaddin bin Haji Abdul Rahman, Coordinating Minister for Social Policies and Manpower and Minister of Home Affairs and Chairman of BIBD.

The launch marked an important milestone for the programme and reflected the collaborative effort that brought the initiative to life, involving regulators, industry partners and stakeholders from across the financial sector.

The successful issuance aligns with the aspirations of the Brunei Darussalam Financial Sector Blueprint 2026–2035, particularly its priorities to deepen the financial market ecosystem, further innovate Islamic finance and broaden access to financial products and investment opportunities.

Through the development of a domestic corporate Sukuk market, Brunei Darussalam can progressively expand alternative financing channels for businesses, strengthen the mobilisation of domestic capital and support a more diversified financial ecosystem.

The initiative also contributes to the broader objectives of Wawasan Brunei 2035 by supporting financial sector development, economic diversification and the creation of new opportunities for investment and long-term economic growth.

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As Brunei Darussalam’s flagship Islamic financial institution, BIBD remains committed to playing an active role in advancing Islamic finance and strengthening the foundations of the nation’s financial sector.

Building on the successful completion of its inaugural issuance, BIBD will continue to explore opportunities under its Sukuk Wakalah Programme while supporting broader market development efforts through BIBDS, including investor engagement, financial literacy and the development of capital market solutions for prospective corporate issuers. With the successful execution of this first issuance, BIBD and BIBDS are well-positioned to build on this milestone and support further development of the domestic Sukuk market. Through this milestone, BIBD reaffirms its commitment as a Partner in Progress, contributing towards a more active, inclusive and resilient Islamic capital market that creates long-term value for investors, businesses and Brunei Darussalam.

Commenting on the milestone, Haji Mohammad Yusri bin Haji Wahsalfelah, Acting Managing Director and Chief Executive Officer of BIBD, said, “This milestone represents the culmination of a journey that began with a clear ambition: to create new investment opportunities for Bruneians while contributing to the development of the nation’s capital market.

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“The successful completion of Brunei Darussalam’s first corporate Sukuk Wakalah issuance is a landmark achievement not only for BIBD, but also for the country. It demonstrates what can be achieved when regulators, industry partners and financial institutions work together towards a shared goal.

“We are especially proud that this achievement was driven by the dedication, expertise and commitment of our people. Teams across BIBD and BIBD Securities invested significant effort over many months to bring this programme from concept to completion, creating a foundation that can support future capital market initiatives in Brunei Darussalam.

“We would like to express our sincere appreciation to BDCB, BIBD Board of Directors and BIBD Shariah Advisory Body, our strategic partners and investors for their support throughout this journey. As a first-of-its-kind initiative, this milestone could only be achieved through strong collaboration and a collective belief in what this programme can contribute to the nation’s financial sector.

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“Our goal was never simply to complete a transaction. It was to create an opportunity that would outlast the issuance itself, one that provides investors with more choice, supports the continued growth of Islamic finance and contributes to the development of Brunei Darussalam’s capital market.

“While this issuance marks the completion of an important chapter, it also marks the beginning of the next one.

“We look forward to continuing to support the development of the capital market, creating new opportunities for investors and helping to build a stronger financial ecosystem for future generations.”