Structuring and investing in Sukuk - Revision history

Admin: Text replacement - "http://45.40.136.134/~hodhood/" to "https://www.hodhood.com/en/"

2017-11-10T04:53:10Z

Text replacement - "http://45.40.136.134/~hodhood/" to "https://www.hodhood.com/en/"

Maintenance script: Imported from text file

2016-09-20T18:58:06Z

Imported from text file

Maintenance script: Imported from text file

2016-09-20T17:47:50Z

Imported from text file

New page

== Top 20 FREQUENT WORDS ==
islamic 106
sukuk 86
bonds 56
securities 29
overview 28
certificates 25
government 24
financial 21
investor 20
based 19
finance 19
ijarah 19
issuing 19
assets 18
development 18
salam 18
issued 17
contract 16
investing 16
shari 16

== DOCUMENT KEY POINTS ==
*what this means in practice will hopefully become apparent to readers of this book but it is worth stressing here that the essential concepts are a c transparency and clarity of rights and obligations a c that income from securities must be related to the purpose for which the funding is used and not simply comprise interest and a c that securities should be backed by real underlying assets rather than being simply paper derivatives
*islamic bonds your guide to issuing structuring and investing in sukuk overview of the sukuk market professor rodney wilson institute for middle eastern and islamic studies university of durham united kingdom modern sukuk sometimes referred to as islamic bonds are better described as islamic investment certificates

*the legitimacy of sukuk although there is no compulsion to comply with the rulings of the fiqh academy of the organization of the islamic conference their rulings carry considerable weight with most islamic financial institutions and their shari a committees and advisers

*subject to proper legal documentation the fiqh academy under decision number of overview of the sukuk market ruled a c that any collection of assets can be represented in a written note or bond and a c that this bond or note can be sold at a market price provided that the composition of the group of assets represented by the security consists of a majority of physical assets and financial rights with only a minority being cash and interpersonal debts

*the buyers of the certificates are entitled to the commodities for which the original purchaser contracted at the end of the one or three months or what ever period was stipulated in the contract
*originally such contracts were used for the purchase of grains such as wheat barley and rice but salam contracts could also be used for commodities such as oil iron ore or copper or indeed even electricity supplies that can be measured in kilowatts

*in particular the duty to repair and maintain the property being leased remains with the lessor as owner as if the lessee was liable this would introduce an additional element of uncertainty with respect to the costs to the lessee as maintenance payments could be regarded as an extra rental element
*expenses related to the operation of a leased asset are however the responsibility of the lessee such as fuel in the case of a leased vehicle or aircraft or fertiliser and seeds in the case of leased land

*as an ijarah contract is for a predetermined period and as the rent provides a regular monthly quarterly or annual income it is clearly well suited to be covered by the issue of securities that have many of the characteristics of bonds
*it is important to note that ijarah certificates or securities represent a proportionate ownership claim over a leased asset and therefore those who hold the securities have ownership responsibilities that only terminate when the securities mature or if they are sold to another party who then assumes the responsibilities

*permission to transfer the debt contract from the financier to a supplier of goods and services must be sought from the original debtor the public authority or private company commissioning the project
*potential for mudaraba and musharaka bonds there is also scope for introducing mudaraba and musharaka bonds although arguably these should be designated as notes as the returns will be variable rather than fixed as is the case with salam ijarah and istisna a certificates

*conventional banks in egypt notably bank misr have also issued mudaraba certificates as one of their islamic products but there has been some concern about possible co mingling of funds and the guarantees of the bond principal which violate the shari a principle of no reward without risk or effort
*the first attempt to overcome the liquidity problem facing islamic banks was undertaken by bank negara malaysia the central bank in july after the first islamic bank in malaysia began operations as it was realised that bank islam malaysia could not hold government securities or treasury bills that paid interest

*the investor bank in the mii scheme does not know in advance what the actual profit will be as it depends on the gross profit of the investee bank
*following the decision in malaysia to allow conventional banks to accept islamic deposits and offer islamic financing facilities bank negara recognised that these developments would be helped if an inter bank money market could be established

*the establishment of the islamic money market in bahrain will it is hoped result in the emergence of markets in longer term islamic securities notably bonds with bahrain playing a similar role in the gulf and west asia to that of kuala lumpur in south east asia

*the joint lead managers for the issue were hsbc bank and the qatar international islamic bank with the co managers being the abu dhabi islamic bank gulf international bank kuwait finance house commerce international merchant bankers of malaysia the islamic development bank and the qatar islamic bank

*the bonds are linked to sama s repo facility with the banks allowed to raise liquidity up to the value of per cent of their gross bond holdings at the nominal value of the issues with repos running from overnight to days
*falling interest rates since have decreased bond yields although the gap has widened between bill yields that reflect short term interest rate movements and bond yields that respond to longer term expectations that influence bond prices

*the sukuk which was structured on an ijarah basis was approved by yasaar limited the provider of shari a advisory services and managed by volaw trust and corporate services a jersey based law firm with extensive contacts in the gulf
*rival citigroup s islamic finance subsidiary bahrain based citi islamic investment bank has already managed the sukuk offered by the jeddah based islamic development bank in that raised us million through a structure predominately based on ijarah assets but also including murabaha and istisna a contracts

''Please note, This is an auto generated summary based on sentances position in the document and other factors''
== DOCUMENT WORD ANALYSIS ==
=== Main Category ===
: AlHuda Material\sukuk islamic

=== KeyWords ===
sukuk islam asset finance issu certifi financi contract bankable bond ijarah leas structur profit holder rate developed purchase risk investor

== RELATED DOCUMENTS ==
:[[Airline Sukuk by Robert Fugard.pdf.txt]]
:[[Case Studies on Sukuk by Muhammad Haris.pdf.txt]]
:[[Challenges of Islamic Financial Market by Jalil Alvi.pdf.txt]]
:[[Challenges to Making Sukuk Sharia Compalience by Dr. M. Anas.pdf.txt]]
:[[Currency Exchange.pdf.txt]]
:[[Global Standard for Sukuk Ijlal Alvi.pdf.txt]]
:[[Islamic Banking and the Housing Industry Abdel Karim Halabi,.pdf.txt]]
:[[Islamic Cost of Capital by Jilal Alvi.pdf.txt]]
:[[Islamic Features of a Sukuk by MIR Takaful Investment.pdf.txt]]
:[[Islamic Finance Sukuk by Dr. Eltegani Abdel Gadir Ahmed.pdf.txt]]
:[[Islamic Finance sukuk, Shariah by Lovells.pdf.txt]]
:[[Islamic Interbank Market & Sukuk by Masood Ajazi.pdf.txt]]
:[[Islamic Liquidity Management Alternatives by Ali Ahmed Sidd.pdf.txt]]
:[[Islamic Money Market & Importance of Liquid Sukuk by Humayon.pdf.txt]]
:[[Islamic Mortgages in the US by AbuBakar Thomson.pdf.txt]]
:[[Islamic Sukuk by Muhammad Faisal Shaikh.pdf.txt]]
:[[Istisna Ijarah Sukuk Structure.pdf.txt]]
:[[Managing Financial Risk of Sukuk by Ali Arsalan Tariq.pdf.txt]]
:[[Nakhel Sukuk by Qadeer Latif.pdf.txt]]
:[[New Sukuk Products - A Case for Microfinance Sector by Salma.pdf.txt]]
:[[Overview of Sukuk by Puzant Merdinian, SJ Berwin LLP.pdf.txt]]
:[[Overview of the Sukuk market by Professor Rodney Wilson.pdf.txt]]
:[[Present Trends and future propectus of Sukuk.pdf.txt]]
:[[Re-engineering of Structural & issuance procedures of Sukuk.pdf.txt]]
:[[REITs by Mian Mohammed Nazir.pdf.txt]]
:[[Securitiazation.pdf.txt]]
:[[Securitization by Muhammad Imran Usmani.pdf.txt]]
:[[Shariah Guidlins for Sukuk by Fazan.pdf.txt]]
:[[Structure of Islamic REITs by Dr. Muhammad Mahmud awan.pdf.txt]]
:[[Structuring and investing in Sukuk by Prof. Rodney Wilson.pdf.txt]]
:[[Structuring and investing in Sukuk.pdf.txt]]
:[[Sukuk - A case study microfinance sector by Salman Syed Ali.pdf.txt]]
:[[Sukuk for Real Estate.pdf.txt]]
:[[Sukuk al Istisna Case Study.pdf.txt]]
:[[Sukuk and its type.pdf.txt]]
:[[Sukuk by Mr. Hamad Rasool.pdf.txt]]
:[[Sukuk Issuance - Sharia prespectives by Muhammad Talha.pdf.txt]]
:[[Sukuk Regulation by Mr. Sibghatullah Ahsan.pdf.txt]]
:[[Sukuk structure by Hamad Hassan.pdf.txt]]
:[[Sukuk, Securitization by Mr. Muhammad Ayub.pdf.txt]]

== DOCUMENT REFERENCES ==

=== Number of Pages ===
15

=== Published Date ===
2004-08-27 12:21:12

== Full Document ==

[http://45.40.136.134/~hodhood/HodHoodDocuments/IslamicFinance/SukukIslamic/Structuring%20and%20investing%20in%20Sukuk%20by%20Prof.%20Rodney%20Wilson.pdf Read the Full Document]

[[Category:Islamic Finance]]

[[Category: Sukuk Islamic]]

← Older revision		Revision as of 04:53, 10 November 2017
Line 132:		Line 132:


−	[~~http~~://45.40.~~136.134~~/~~~hodhood~~/HodHoodDocuments/IslamicFinance/SukukIslamic/Structuring%20and%20investing%20in%20Sukuk%20by%20Prof.%20Rodney%20Wilson.pdf Read the Full Document]	+	[https://www.hodhood.com/en/HodHoodDocuments/IslamicFinance/SukukIslamic/Structuring%20and%20investing%20in%20Sukuk%20by%20Prof.%20Rodney%20Wilson.pdf Read the Full Document]

@@ Line 75: / Line 75: @@
 == RELATED DOCUMENTS ==
-:[[Airline Sukuk by Robert Fugard.pdf.txt]]
+:[[Airline Sukuk by Robert Fugard]]
-:[[Case Studies on Sukuk by Muhammad Haris.pdf.txt]]
+:[[Case Studies on Sukuk by Muhammad Haris]]
-:[[Challenges of Islamic Financial Market by Jalil Alvi.pdf.txt]]
+:[[Challenges of Islamic Financial Market by Jalil Alvi]]
-:[[Challenges to Making Sukuk Sharia Compalience by Dr. M. Anas.pdf.txt]]
+:[[Challenges to Making Sukuk Sharia Compalience by Dr. M. Anas]]
-:[[Currency Exchange.pdf.txt]]
+:[[Currency Exchange]]
-:[[Global Standard for Sukuk Ijlal Alvi.pdf.txt]]
+:[[Global Standard for Sukuk Ijlal Alvi]]
-:[[Islamic Banking and the Housing Industry Abdel Karim Halabi,.pdf.txt]]
+:[[Islamic Banking and the Housing Industry Abdel Karim Halabi,]]
-:[[Islamic Cost of Capital by Jilal Alvi.pdf.txt]]
+:[[Islamic Cost of Capital by Jilal Alvi]]
-:[[Islamic Features of a Sukuk by MIR Takaful Investment.pdf.txt]]
+:[[Islamic Features of a Sukuk by MIR Takaful Investment]]
-:[[Islamic Finance Sukuk by Dr. Eltegani Abdel Gadir Ahmed.pdf.txt]]
+:[[Islamic Finance Sukuk by Dr. Eltegani Abdel Gadir Ahmed]]
-:[[Islamic Finance sukuk, Shariah by Lovells.pdf.txt]]
+:[[Islamic Finance sukuk, Shariah by Lovells]]
-:[[Islamic Interbank Market & Sukuk by Masood Ajazi.pdf.txt]]
+:[[Islamic Interbank Market & Sukuk by Masood Ajazi]]
-:[[Islamic Liquidity Management  Alternatives by Ali Ahmed Sidd.pdf.txt]]
+:[[Islamic Liquidity Management  Alternatives by Ali Ahmed Sidd]]
-:[[Islamic Money Market & Importance of Liquid Sukuk by Humayon.pdf.txt]]
+:[[Islamic Money Market & Importance of Liquid Sukuk by Humayon]]
-:[[Islamic Mortgages in the US by AbuBakar Thomson.pdf.txt]]
+:[[Islamic Mortgages in the US by AbuBakar Thomson]]
-:[[Islamic Sukuk by Muhammad Faisal Shaikh.pdf.txt]]
+:[[Islamic Sukuk by Muhammad Faisal Shaikh]]
-:[[Istisna Ijarah Sukuk Structure.pdf.txt]]
+:[[Istisna Ijarah Sukuk Structure]]
-:[[Managing  Financial Risk of Sukuk by Ali Arsalan Tariq.pdf.txt]]
+:[[Managing  Financial Risk of Sukuk by Ali Arsalan Tariq]]
-:[[Nakhel Sukuk by Qadeer Latif.pdf.txt]]
+:[[Nakhel Sukuk by Qadeer Latif]]
-:[[New Sukuk Products - A Case for Microfinance Sector by Salma.pdf.txt]]
+:[[New Sukuk Products - A Case for Microfinance Sector by Salma]]
-:[[Overview of Sukuk by Puzant Merdinian, SJ Berwin LLP.pdf.txt]]
+:[[Overview of Sukuk by Puzant Merdinian, SJ Berwin LLP]]
-:[[Overview of the Sukuk market by Professor Rodney Wilson.pdf.txt]]
+:[[Overview of the Sukuk market by Professor Rodney Wilson]]
-:[[Present Trends and future propectus of Sukuk.pdf.txt]]
+:[[Present Trends and future propectus of Sukuk]]
-:[[Re-engineering of Structural & issuance procedures of Sukuk.pdf.txt]]
+:[[Re-engineering of Structural & issuance procedures of Sukuk]]
-:[[REITs by Mian Mohammed Nazir.pdf.txt]]
+:[[REITs by Mian Mohammed Nazir]]
-:[[Securitiazation.pdf.txt]]
+:[[Securitiazation]]
-:[[Securitization by Muhammad Imran Usmani.pdf.txt]]
+:[[Securitization by Muhammad Imran Usmani]]
-:[[Shariah Guidlins for Sukuk by Fazan.pdf.txt]]
+:[[Shariah Guidlins for Sukuk by Fazan]]
-:[[Structure of Islamic REITs by Dr. Muhammad Mahmud awan.pdf.txt]]
+:[[Structure of Islamic REITs by Dr. Muhammad Mahmud awan]]
-:[[Structuring and investing in Sukuk by Prof. Rodney Wilson.pdf.txt]]
+:[[Structuring and investing in Sukuk by Prof. Rodney Wilson]]
-:[[Structuring and investing in Sukuk.pdf.txt]]
+:[[Structuring and investing in Sukuk]]
-:[[Sukuk - A case study microfinance sector by Salman Syed Ali.pdf.txt]]
+:[[Sukuk - A case study microfinance sector by Salman Syed Ali]]
-:[[Sukuk  for Real Estate.pdf.txt]]
+:[[Sukuk  for Real Estate]]
-:[[Sukuk al Istisna Case Study.pdf.txt]]
+:[[Sukuk al Istisna Case Study]]
-:[[Sukuk and its type.pdf.txt]]
+:[[Sukuk and its type]]
-:[[Sukuk by Mr. Hamad Rasool.pdf.txt]]
+:[[Sukuk by Mr. Hamad Rasool]]
-:[[Sukuk Issuance - Sharia prespectives by Muhammad Talha.pdf.txt]]
+:[[Sukuk Issuance - Sharia prespectives by Muhammad Talha]]
-:[[Sukuk Regulation by Mr. Sibghatullah Ahsan.pdf.txt]]
+:[[Sukuk Regulation by Mr. Sibghatullah Ahsan]]
-:[[Sukuk structure by Hamad Hassan.pdf.txt]]
+:[[Sukuk structure by Hamad Hassan]]
-:[[Sukuk, Securitization by Mr. Muhammad Ayub.pdf.txt]]
+:[[Sukuk, Securitization by Mr. Muhammad Ayub]]