Brunei sells 148 mln in local currency Islamic bonds

KUALA LUMPUR, Jan 6 (Reuters) - Brunei has sold B$148 million ($100.7 million) of short-term Islamic bonds, bringing total government issuance to B$1.3 billion to date.

In a statement dated Dec. 18 but sent to Reuters on Tuesday, the government said it sold the bonds in four different issuances, with maturity periods ranging from 91 days to 364 days.

Capitalising on growing demand for sharia-compliant investments, the Brunei government has been issuing Islamic debt since 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. ($1=1.4689 Brunei dollar) (Reporting by Soo Ai Peng; Editing by Anshuman Daga)