In September 2002, Brunei made its first venture into the arena of international debt markets by undertaking a USD250 million syndicated loan. Arranged by ABN Amro, BNP Paribas, and HSBC, the loan enabled the country to gain international exposure and establish closer commercial banking relationships. This development has set the stage for future financing ventures, including the possible issuance of a sovereign benchmark bond.

The Government may soon issue treasury bills and short-term government securities for the first time. This follows the expanded role of the Brunei Currency and Monetary Board (BCMB) as outlined in the new Currency and Monetary Order, which took effect in February 2004. Under the new law, the BCMB may purchase, sell, discount, and rediscount treasury bills and short-term government securities denominated in Brunei dollars.

The Government's efforts to bring monetary and financial practices in line with international standards are intended to further develop the Brunei International Financial Center. As part of government initiatives to diversify economic activity, the Brunei International Financial Center is expected to become an important offshore financial center in the region, particularly for Islamic finance. Reforms are currently underway to establish the necessary legislative and regulatory framework for the Brunei International Finance Center.