Sukuk By Ijlal Alvi

Top 20 FREQUENT WORDS

sukuk 72 asst 31 hassan 31 prof 31 rusni 31 islamic 26 shariah 22 debt 16 guidelines 15 securities 15 usd 14 issuance 13 malaysian 13 financial 10 malaysia 10 sale 10 asset 9 billion 9 principles 9 bay 8 papers 8

DOCUMENT KEY POINTS

• presentation outline i introduction a what is sukuk a sukuk securitisation process a features criteria of sukuk i sukuk the malaysian perspective a malaysian sukuk market a malaysia s strength in sukuk market i conclusion asst
• dr rusni hassan C

• what is sukuk a c sukuk is a certificate evidencing ownership of an asset or its usufruct a c the sukuk structures rely on the creation of a special purpose vehicle spv a c spv would issue sukuk certificates which represent either ownership of an asset entitlement to a debt or to rental incomes or even accumulation of returns from various sukuk a hybrid sukuk a c the return provided to a sukuk holders come in the form of profit from a sale rental or combination of both asst
• doctor rusni hassan c

• how sukuk is created a a c sukuk is created via a securitisation process ie a process of converting something into cash or equivalent in the form of papers that are tradable in the secondary market a c the process of packaging financial promises and transforming them into a form whereby they can be freely transferred among the multitude of investors davidson andrew et
• in securitization structuring and investment analysis asst

• sukuk the islamic perspective a c equivalent term is al tawriq al tasnid al taskik transforming a deferred debt for the period between the establishment of the debt and the maturity period into papers which can be traded in the secondary market nazih hammad in majallah majma al fiqh asst
• doctor rusni hassan c

• securitisation sukuk process trading activities secondary market securitization securitization of assets indebtedness into papers tradable units a c issuance of notes a c debt papers evidence of the obligation to pay a c bond assets equity debt asst
• doctor rusni hassan c

• doctor rusni hassan c

• criteria of sukuk a c to be islamic the structuring of securities sukuk must have the following criteria i contract creating the indebtedness financial obligation at the primary level must be shariah compliant ii after the securitization process a mode of trading of the bonds sukuk at the secondary level must also be shariah compliant asst
• doctor rusni hassan c

• how to ensure shariah compliance a c observe the requirement of islamic contract a general principles of fiqh muamalat a c avoid prohibitions in shariah riba gharar maysir etc a c rule all contracts are deemed permissible except when it contravene the established principles of shariah a a a i a Ya Ca the original rule in contract is permissibility asst
• doctor rusni hassan c

• essential features of sukuk a c transparency clarity of rights and obligations a c income from securities must be related to the purpose for which the funding is used and not simply comprise of interest a c securities must be backed by real underlying assets a rather than being simply paper derivatives asst
• doctor rusni hassan c

• sukuk the malaysian perspective asst
• doctor rusni hassan c

• malaysian islamic financial system islamic islamic capital takaful banking market bank negara takaful act retail equity bond market bank negara market a ciba a islamic bank a cbafia a sptf securities commission a csecurities commission act a csptf guidelines a ccapital market and services act a cetc a ccompanies act deposit a cguidelines for is investment a cetc asst
• doctor rusni hassan C

• the malaysian sukuk market a c malaysia s track record in sukuk origination and issuances has been notable for its pioneering efforts since when the first sukuk issued by shell mds a c as of the year malaysia is the largest sukuk market in the world a c achieving
• or usd billion of the global outstanding sukuk a c malaysian corporation issued the largest sukuk offering in the world amounting to usd

• notable malaysian sukuk issuance issuer amount year transaction highlights shell mds rm million usd m world s first ringgit sukuk issuance by foreignowned non islamic company kumpulan guthrie bhd usd million world s first global corporate sukuk government of malaysia usd million world s first global sovereign sukuk international finance corporation rm million usd m first ringgit sukuk issuance by suprational agency world bank cagamas mbs bhd rm
• billion complex and innovative structure a conversion of existing debts of plus into islamic financing khazanah nasional rafflesia usd million world s first exchangeable sukuk capital limited aeon credit services rm million usd million first japanese owned company issuing sukuk nucleus avenue malakoff rm billion usd

• size of sukuk approved by shariah principle asst
• dr rusni hassan C

• malaysia s strength in sukuk market a c malaysia provides comprehensive solution for sukuk activities by providing a complete sukuk issuance and trading platform
• wide range of islamic instruments

• wide range of islamic instruments a c malaysia has a broad base of islamic financial instruments that support sukuk market a c varieties of sukuk offerings a c good hedging risk management instruments a c currency swaps a c islamic forward contracts asst
• dr rusni hassan C

• in m sia a this is a long term debt security wakalah sukuk holders appoint the beneficiary of funds as depending on the underlying asset these sukuk their agent to perform certain business operations
• bba sakk represents assets purchased and intended for sukuk are only tradable under malaysian rules

• active experimentations with the forms of sukuk issuance a a c originally most of the malaysian sukuk are bba or murabahah based a c due to its controversial nature according to the global standards recent development of sukuk issuance shows the decline of bba sukuk a c in fact all notable of sukuk approved in the first quarter of are based on other concept asst
• dr rusni hassan C

• malaysia s fully developed islamic financial system a c malaysia has strong comprehensive islamic financial system islamic banking takaful islamic money market islamic capital market a c different parts of the islamic financial system a facilitates the issuance distribution of the sukuk papers a creates a strong demand for sukuk by providing a broad investor base asst
• dr rusni hassan C

• strong legal regulatory infrastructure a c malaysian sukuk market is supported by facilitative rules regulations that provide an efficient platform for sukuk market a c the main regulator is securities commission sc a that regulates both conventional icm a legislation governing islamic securities is similar with conventional with distinguished additional instruments guidelines to ensure shariah compliance asst
• dr rusni hassan C

• guidelines to facilitate sukuk a a c guidelines on the offering of private debt securities pds guidelines a includes guidelines on ipds a c guidelines on the offering of asset backed debt securities includes iabs a c guidelines on the minimum contents requirements for trust deeds a c guidelines on contents of prospectus for debentures a c guidelines on islamic securities asst
• doctor rusni hassan c

• regulations for malaysian sukuk a c capital market and services act cmsa a c securities commission act sca a c securities industry central depository act sicda a c companies act ca a c other rules guidelines a c regulations a c ministerial orders a c orders directives by sc a c guidelines asst
• doctor rusni hassan c

• facilitative infrastructure a c malaysia has in place the financial infrastructure facilitative rules on sukuk a c establishment of mifc as one stop centre a c facilitative environment approval process a real time electronic transfer of funds securities rentas a fully automated system for issuance tendering fast a bond information and dissemination system bids a c tax incentives a profits dividends of islamic instruments received by nonresident investors are exempted from tax a spv are not subject to administrative procedures under income tax act asst
• dr rusni hassan C

• shariah governance framework a c through the supervision of sc s shariah advisory council a c the sac s function a c advise on operation development a c advise on compliance criteria guideline a c review proposals inquiries and give legal opinions a c promote harmonisation convergence of shariah principles a c provide general guideline on matters related to islamic investment transactions asst
• doctor rusni hassan c

• guidelines in the sukuk issuance procedure a c financial centre offering sukuk must appoint independent shariah advisor consultant a c shariah advisor consultant must be approved registered by sc a c ensure sukuk is structured according to shariah principles approved by sac of sc a c any new principles not listed in the guidelines must consult sc s sac a c ensure harmonisation of shariah principles practices asst
• doctor rusni hassan c

• approved shariah principles for issuance of sukuk primary supplementary a cbba a cbay al dayn a cmurabahah a cbay al muzayadah a cistisna a cdhaman a cbay al inah a ckafalah a cbay al salam a chaq tamalluk a cijarah a chibah a cijarah thumma al bay a chiwalah a cmudarabah a cwakalah a cmusharakah a cujrah a cqard al hasan a cibra a crahn asst
• doctor rusni hassan c

• information disclosure of islamic securities a c material information that must be disclosed in the issuance of is a c details of utilisation of proceeds a c underlying identified assets a c shariah principles used a c name of shariah advisor a c declaration statement from shariah advisor a c description of facility structure a c prices ie sale purchase price a c details on primary secondary bonds asst
• doctor rusni hassan C

• conclusion a c while much has been achieved much remain to be done a c to overcome challenges to identify the way forward asst
• dr rusni hassan C

• the way forward a a c creation of better secondary trading platform a c continuous supply of islamic papers a c greater diversity in type and maturity of sukuks in the market a c pool of shariah experts that fully understand the mechanics of sukuk a c convergence of shariah principles harmonisation of standards asst
• dr rusni hassan C

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DOCUMENT WORD ANALYSIS

Main Category

AlHuda Material\sukuk islamic

KeyWords

sukuk issu secur debt malaysia investor issuanc islam bond issuer corporate billion governance malaysian rate structur bankable institut developed convention

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DOCUMENT REFERENCES

Number of Pages

32

Published Date

2016-09-17 00:55:26

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