[Back to Top]
 COURSE AGENDA
Day 1: Core Principles & Sukuk
Introduction to Primary Underlying Principles of Islamic Finance as applied in the Capital Markets
- Questions of riba & gharar
- Possession, Ownership
What are Sukuk?
- Definition of Sukuk
- Shariah Basis of Sukuk
Capital Markets & Securitization
- Types of Sukuk and comparison with conventional bonds and Asset Backed Securities
- High level considerations for issuers, structurers, buyers and regulators
- Overview about recent issues of Sukuk and the market demand/subscription
- Overview of market growth, demand factors, and absence of secondary markets
Legal, Tax and Infrastructure Concerns for the Islamic Capital Markets
- Offering requirements for placements in the Middle East
- Trust and SPV rules, absence thereof
- Regulatory considerations
- Regulatory developments and differences from jurisdiction to jurisdiction
- Structural problems in the different key markets
- Role of the Ratings Agencies
Overview of Case Studies and Applications
- Sovereign Sukuk
- Corporate Issues
- Cutting Edge Applications
Global Oil
- Malayisan market case of conventional and Islamic obligor
- Obligor utilizes syndications, securities and blended tools
- Case looks into key decisions and distinctions for obligor, underwriter and market
Case study: Sovereign Sukuk of Qatar v. Telekom Malaysia
- Examine Ground Rent Strategy, Trust Problems in GCC and LIBOR
- Structure distinctions between Sukuk and syndicated ijarah
Case study: Islamic Development Bank, Mixed Asset Case
- Examine the issues behind rating Sukuk
- Look at S&P and Fitch rating materials governing logic for rating Islamic deals
Case study: Sukuk of Saxony-Anhalt-Non-Islamic Issuers Perspective
- Examine Issuer's Multi-Lender Strategy, Civil v. Common Law Trust problems
- Structure
- Reasoning explained
- Benefits of Issuers
Day 2: Transaction Day
Case study: Corporate Sukuk of Tabreed
- Examine mixed asset issuance for corporate finance and Shariah purposes
- Benefits for corporates in issuing "Islamic bonds"
- Market acceptance
Case study: Construction & Development Case - SKS/Tagung Power, Malaysia v. Yanpet
- Examine regulatory and practical issues for securitized project finance
- Sukuk for project finance
- Comparative issues in the choice of structure between countries with trust laws and countries lacking trust laws
Al Intifa'a - Ijarah Derivative
- Zam Zam Tower Video
- Zam Zam Tower logic and structure, comparison to basic ijarah
- Flexibility of application
Property Finance Applications of Sukuk
- Examine issues in the property markets, differing solutions based on recent market developments
- Acquisition
- Debt: Islamic v. Conventional
- Construction
- Retail Pools
- Managing exchange risks
Asian Telecoms
- Discussion on securitized manufacturing finance
- Pre-construction and pre-manufacturing finance
- Trade finance
Case study: Syndicated Transactions/What type of Kayak Case
- Syndicated murabahah applying mudarabah to accumulate funds
- Benefits of syndication and challenges
- Limitations of murabahah
- Contrast to syndicated ijarah
Day 3: Funds & Hedging
Islamic Screens and their logic
- Review the portfolio issues for fund management and equity investing
- Discuss prevailing consensus of scholars relating to screens, purification and conversion of product
Hedging, Portfolio and Balance Sheet Management
- Examine key issues in the market and look at some of the methods applied using either murabahah or Sukuk
- Cash and Carry Modernized
- Sukuk as an option
- Arbun and options
Tawurruq
- Compare and contrast to "true" murabahah and salam
- Discuss application for both hedging and risk management
- Examine concerns among scholars and market participants
Arabian Bottling Case
- Case shows how manufacturer manages its commodity supply costs through salam
- Discussion of how the company also manages excess cash
- Compare salam as applied by BMA
Is there a Hedge for the Fund?
- Examine the concepts of "Hedge Fund" v. "hedging"
- Short sale issues reviewed
- Option issues reviewed
- How salam , intifah and arbun are providing opportunities
Q&A
- Product discussions
- Issuer & Underwriter Issues
- Strategic Applications
- Outlook: What is the market expecting?
Day 4: Products & Documentation
Practical considerations when deciding on a Sukuk structure
- Simplicity
- Maximising productivity of the underlying asset(s)
- Public & private issue
- Timeframes
- Shariah approval
- Advantages & disadvantages of structures
- Disclosure
- Listing
- Rating
Stand-alone issue or Medium Term Note (MTN) Program?
- Discussion of advantages & disadvantages for an issuer
Key documentation of the most common Sukuk structures
- Sukuk-al-Ijarah
- Purchase agreement, lease agreement, servicing agreement, purchase undertaking
- Sukuk-al-Musharakah
- Musharakah agreement, management agreement, purchase undertaking
- Sukuk-al-Shirkat al-Melk
- Purchase agreement, management agreement, purchase undertaking
- Sukuk-al-Murdurabah
- Murdurabah agreement, purchase undertaking
Fixed income or convertible/ exchangeable Sukuk
Roles of the ratings advisor
Roles of the lead managers and bookrunners
Indicative timetable for issuing a Sukuk
- Setting and meeting objectives
Marketing a Sukuk
- Structuring and marketability
- Positioning the issuer in the market
- Raising the profile of the issue
- Roadshows
- Investor meetings and workshops
Case studies
Course Conclusion & Review
[Back to Top]
EXPERT COURSE DIRECTOR
Abdulkader Thomas
President & CEO, SHAPET Financial Corp. Consultants to the US and international financial community in matters relating to Shariah compliant financial structuring; sub-advisor to the global securities industry with respect to sukuk and other forms of Islamic transactional issuance; and Islamic banking trainingresource. Clients include University Bank of Ann Arbor, Salam Financial Corp. of Toronto , and others. Principal, AJIF.org, LLC (The American Journal of Islamic Finance www.ajif.org). Research resource for the financial services industry including ISI Emerging Markets; Guidance Financial Group, LLC; Lightbulb Press, iHilal.com, Dow Jones Islamic Markets Indexes; and others. Licensor of REIT screening concept to iHilal Financial Services. Abdulkader has 25 years of diversified financial services experience. A graduate of the Fletcher School of Law & Diplomacy in international trade, Abdulkader earned a BA with honors in Arabic & Islamic Studies from the University of Chicago . Abdulkader has worked in Bahrain , New York , London and Los Angeles . His areas of activity have included trade finance, real estate finance, securities, and Islamic finance at Citibank, Credit Lyonnais, Sumitomo Bank, Ltd., The United Bank of Kuwait , and MEF Money/Guidance Financial Group.
Abdulkader is responsible for shepherding the first US banking regulatory approvals of Islamic financial instruments for ijarah wa iqtinah and murabaha. More recently Abdulkader secured regulatory approval for an Islamic profit sharing deposit to be applied in the US . Abdulkader also structured the first REIT of REITs structured to allow Muslims to invest in listed US REITs whilst complying with Shariah . Abdulkader has also been involved in the structuring of inbound foreign investment for both the US and the UK . Abdulkader has included supervising marketing and consumer demographics in conjunction with new business launches. Abdulkader is a frequent speaker on Islamic financial and banking matters. He is the author of several works in the field including Islamic Bonds: Your Guide to Issuing, Structuring and Investing in Sukuk with Nathif Adam ( London : Euromoney, 2004). Forthcoming books include Structuring Islamic Financial Transactions (contracted with Euromoney for early 2006) and Interest in Islamic Economics: Understanding Riba (contracted with Taylor & Francis - Routledge for early 2006).
Megat Hizaini Hassan
Megat Hizaini Hassan is a partner in the Islamic Banking and Finance practice of Zaid Ibrahim & Co.
Megat advises on matters relating to Islamic banking and finance, as well as corporate legal and regulatory developments. He advises clients on the structure and documentation for Islamic banking and trade financing facilities, and appropriate structures for Islamic financing. He has advised clients on issues relating to the proposed incorporation of Islamic subsidiary by Bank Negara Malaysia and legal and regulatory issues relating to Islamic banking and finance In addition, he has advised the firm’s management on issues affecting the legal profession in Malaysia and has been involved in drafting the firm’s official position on the admission of foreign lawyers & law firms in Malaysia and on the Bar Council’s advertising restrictions on local lawyers.
Megat is the co-author of the book entitled “The Law and Practice of Islamic Banking and Finance” published by Sweet & Maxwell. He is also an Adjunct Lecturer at Ahmad Ibrahim Kulliyyah of Laws, International Islamic University Malaysia.
[Back to Top]
DATES & PRICE
Sukuk & Islamic Capital Markets: Product & Documentation
|
|
Dates |
Price/per person (US$) |
|
26 - 29 November 2007,Kuala Lumpur |
2,800 |
| |
|
| |
|
Discounts
• Register 3 or delegates for the same program, and the second and subsequent delegates receive a 7.5% discount each.
[Back to Top]
|
