BIBD Introduces Tradable Syariah-Compliant Papers By Khairunnisa Ibrahim

Bandar Seri Begawan -Locals looking to invest in a short-term, Syariah-compliant investment product that yields high profit rates have the opportunity to do so with the introduction of the the Bank Islam Brunei Darussalam (BIBD) Certificate of Musyarakah Musahamah and Al-Bai', or the Tradable Musyarakah Certificate (TMC), next week.

The TMC is Brunei's first tradable investment certificate that is fully Syariah-compliant and carries a maturity period of 180 days. The certificates are in multiples of $5000, and investors can purchase up to a maximum of $50,000 for general customers and $100,000 for Perdana World Banking patrons. BIBD promises that the TMC will have a higher yield than the current six months terms deposit yield available in Brunei, offering investors an option that not only observes Syariah law but also gives a greater profit.

Aspiring investors will be able to purchase the TMC on February 21 and 22 from the bank's Perdana World Banking counters at its headquarters in the capital, or the BIBD Kuala Belait branch.

The certificates can only be purchased by Brunei citizens and permanent residents aged 18 years and over, who have an active individual account with the bank.

Each investor will receive the physical certificates after three working days from the value date of the investment.

The TMC is based on the Syariah concepts of Musyarakah Musahamah and Al Bat'. The former refers to an equitable joint-venture contract between the investor and the bank, which acts as the manager and investing partner of the venture.

Meanwhile, the Al-Bai' concept provides the trading platform facilitated by BIBD for investors who wish to redeem their certificates before they mature, by allowing the bank to sell the redeemed certificate to other investors within the investment period. The certificate is one of the innovative Islamic finance and banking products of the bank, which hopes to introduce a wide range of Syariah-compliant products and services.

Recently, the Minister of Culture, Youth and Sports, Pehin Orang Kaya Seri Dewa Major General (Rtd) Dato Seri Pahlawan Awg Hj Mohammad Hj Daud is also the deputy chairman of BIBD; announced that the bank is working on introducing several new Syariah-compliant derivative and structural investment products. -- Courtesy of The Brunei Times

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