ASEAN+3 Bond Market Guide 2017 Brunei Darussalam

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• Publisher: Asian Development Bank
• Year: 2017
• Print ISBN: 9789292578855
• eBook ISBN: 9789292578862
• Topic: Business
• Subtopic: Bonds
• Index: Business

ASEAN+3 Bond Market Guide is a comprehensive explanation of the region's bond markets. It provides information such as the history, legal and regulatory framework, specific characteristics of the market, trading and transaction (including settlement systems), and other relevant information. The Bond Market Guide 2017 for Brunei Darussalam is an outcome of the support and contributions of ASEAN+3 Bond Market Forum members and experts, particularly from Brunei Darussalam.

Appendix 1:
Practical References

For easy access to further information about the market features described in the Bond Market Guide for Brunei Darussalam—including information on the policy bodies, regulatory authorities, and securities market-related institutions—interested parties are encouraged to utilize the following links (all websites available in English):

AsianBondsOnline (an initiative of the Asian Development Bank)
https://www.asianbondsonline.adb.org/brunei.php

Autoriti Monetari Brunei Darussalam
http://www.ambd.gov.bn/Site/Home.aspx

Autoriti Monetari Brunei Darussalam—Short-Term Government Sukuk Issuance Calendar
http://www.ambd.gov.bn/2016-short-term-government-sukuk-al-ijarah-issuances-calendar

The Islamic Financial Services Board
http://www.ifsb.org

Attorney General’s Chambers—Legislation Online
http://www.agc.gov.bn/AGC%20Site%20Pages/Legislation.aspx

Ministry of Finance, Revenue Division—Withholding Tax Rates
http://www.mof.gov.bn/index.php/type-of-taxes/witholding-tax/wht-rate

Appendix 2:
Glossary of Technical Terms

Accredited Investor	Investor class in Brunei Darussalam
Arranger	Market term for the investment bank appointed to organize the issuance of debt securities or sukuk
Bahasa Melayu	National language of Brunei Darussalam
Expert Investor	Investor class in Brunei Darussalam
Fintech	Summary term for innovative technology solutions in the financial markets
Hukum Syara’	The laws of Islam according to the Syafeite, Hanafi, Maliki, and Hanbali sect of Ahlis Sunnah Waljamaah
ISO20022	Standard of the International Standardisation Organisation for electronic data interchange between financial institutions
over-the-counter	Organized market for the trading of debt securities and sukuk, with transactions for both listed and unlisted securities
Primary Market Participant	Participant in primary market auctions and distributions of government securities, similar to but without the privileges of a primary dealer
Principal Adviser	Role for investment bank to advise potential issuer on funding strategies, including the issuance of debt securities and sukuk
Prospectus	Key disclosure document for debt securities and sukuk offerings in Brunei Darussalam
Registration	Refers to the registration of securities to be issued with AMBD for the purpose of obtaining approval for said issuance
Registration Statement	Document to be submitted to AMBD for the approval of securities issuance
shelf prospectus	Key disclosure document for debt securities and sukuk offerings under the shelf registration concept in Brunei Darussalam
Sukuk	Sukuk represent the Islamic equivalent of bonds. Sukuk are structured to comply with Syariah law by involving Syariah-compliant assets in the investment.
Sukuk Al-Ijarah	Sukuk Al-Ijarah is the most commonly used sukuk structure, whereby the transaction involves the buying of an asset by a special purpose vehicle (SPV) and this SPV will lease the asset, allowing the other party to be able to use the benefit from the asset. The SPV may issue sukuk certificates to be sold to the investors at principal price. At maturity, the sukuk issuer will receive the rental and pay the investors back the principal amount plus rental.
Syariah	Islamic law (official spelling used in Brunei Darussalam)
Syariah Adviser	In the context of the financial market, has the function of advising financial institutions and other organizations on the structuring of products in compliance with Islamic law
Wawasan Brunei 2035	Program of development goals to be achieved by the year 2035 set out by the Government of Brunei Darussalam; includes goals for the financial and capital markets

Source: ADB consultants for SF1.

¹ ASEAN+3 refers to the 10 members of the Association of Southeast Asian Nations (ASEAN) plus the People’s Republic of China, Japan, and the Republic of Korea.

² ASEAN+3 refers to the 10 members of ASEAN plus the People’s Republic of China, Japan, and the Republic of Korea.

³ Continuing Professional Development (CDP) comprises trainings and other such activities accredited by a specific CDP Board. Courses offered by the Centre for Islamic Finance, Business and Management are one example of CDP.

⁴ For an example of available information, please see http://www.ambd.gov.bn/Lists/News/Displayitem.aspx?ID=275

⁵ See https://asianbondsonline.adb.org/Brunei.php

⁶ See http://www.adb.org/publications/asean3-information-transaction-flows-and-settlement-infrastructures

⁷ For further information, the Stamp Act (Chapter 34 of the laws of Brunei Darussalam) may be found at http://www.agc.gov.bn/AGC%20Images/LOB/PDF/Cap34.pdf

Table of contents

• Front Cover
• Title Page
• Copyright Page
• Tables and Figures
• Foreword
• Acknowledgments
• Abbreviations
• I: Overview
• II: Legal and Regulatory Framework
• III: Characteristics of the Brunei Bond Market
• IV: Bond, Note, and Sukuk Transactions and Trading Market Infrastructure
• V: Description of the Securities Settlement System
• VI: Bond Market Costs and Taxation
• VII: Market Size and Statistics
• VIII: The Brunei Sukuk Market
• IX: Brunei Bond Market Challenges and Opportunities
• X: Recent Developments and Future Direction
• Appendix 1: Practical References
• Appendix 2: Glossary of Technical Terms
• Back Cover