“Liquidity Management in Islamic Banking”

IDB/IRTI

“Structuring Sukuk Transactions”October, 2015

Shahin A. ShayanChairman of the Board

Hoda International Financial Engineering Company

“Liquidity Management in Islamic Banking”

IDB/IRTI

“Structuring Sukuk Transactions”October, 2015

Shahin A. ShayanChairman of the Board

Hoda International Financial Engineering Company

Global Islamic Finance Market

Shahin A. Shayan

Source: Islamic Financial Services Industry Stability Report 2015

Total of $1868.1 Billion USDTotal of $1868.1 Billion USD

79%79% 16%16% 4%4% 1%1%

Modern Sukuk issues, sometimes referred to as IslamicBonds, are better described as Islamic InvestmentCertificatesSukuk certificates are securitized assets and thereforebelong to the category of asset-backed securitiesUnlike conventional asset-backed structures, Sukukstructures need to have an underlying tangible assetstransactionSukuk certificates can be considered as asset-backedsecurities that are backed by Shariah compatible streamsof income and tangible assets. One can consider thesecertificates as “Shariah Compatible Trust Certificate”

Sukuk SecuritiesModern Sukuk issues, sometimes referred to as IslamicBonds, are better described as Islamic InvestmentCertificatesSukuk certificates are securitized assets and thereforebelong to the category of asset-backed securitiesUnlike conventional asset-backed structures, Sukukstructures need to have an underlying tangible assetstransactionSukuk certificates can be considered as asset-backedsecurities that are backed by Shariah compatible streamsof income and tangible assets. One can consider thesecertificates as “Shariah Compatible Trust Certificate”

Shahin A. Shayan

The word Sukuk (plural for Sak) means deed, titledeeds or a certificate of ownership – Check SakSukuk issues are financial instruments that mobilizefunds using the balance sheet, credibility andfeasibilities of proposed projects (Asset Based)Sukuk issues are certificates of ownership on a prorata basis which are negotiable in the secondarymarkets (Structured Finance Certificates)

Sukuk SecuritiesThe word Sukuk (plural for Sak) means deed, titledeeds or a certificate of ownership – Check SakSukuk issues are financial instruments that mobilizefunds using the balance sheet, credibility andfeasibilities of proposed projects (Asset Based)Sukuk issues are certificates of ownership on a prorata basis which are negotiable in the secondarymarkets (Structured Finance Certificates)

Shahin A. Shayan

Sukuk Securities• Sukuk can be very effective in managing liquidity in Islamic

Financial Institutions and meeting SLM requirements.• Sukuk can be very effective in Asset Liability Management in

Islamic Financial Institutions and meeting ALM requirements.• Sukuk can be developed through Securitization of assets

which represent the proportionate ownership of the holder inilliquid or other tradable assets.

• Trading of such securities is permissible as this will betantamount to the sale/ purchase of holder’s proportionateshare in the assets, which is allowed in Shariah.

• Examples: Malaysia Ijarah Sukuk, Qatar Global Sukuk, DubaiGlobal Sukuk

• Sukuk can be very effective in managing liquidity in IslamicFinancial Institutions and meeting SLM requirements.

• Sukuk can be very effective in Asset Liability Management inIslamic Financial Institutions and meeting ALM requirements.

• Sukuk can be developed through Securitization of assetswhich represent the proportionate ownership of the holder inilliquid or other tradable assets.

• Trading of such securities is permissible as this will betantamount to the sale/ purchase of holder’s proportionateshare in the assets, which is allowed in Shariah.

• Examples: Malaysia Ijarah Sukuk, Qatar Global Sukuk, DubaiGlobal Sukuk

Shahin A. Shayan

Sukuk certificate legal structure is derived from theconventional securitization structure in which a specialpurpose vehicle (SPV) is setup to acquire the suitableassets and to issue financial claims on the assets.These financial asset claims represent a proportionatebeneficial ownership to the Sukuk holdersThe Accounting and Auditing Organization for IslamicFinancial Institutions (AAOIFI) issued standards for 14different types of Sukuk

Sukuk Securities

Sukuk certificate legal structure is derived from theconventional securitization structure in which a specialpurpose vehicle (SPV) is setup to acquire the suitableassets and to issue financial claims on the assets.These financial asset claims represent a proportionatebeneficial ownership to the Sukuk holdersThe Accounting and Auditing Organization for IslamicFinancial Institutions (AAOIFI) issued standards for 14different types of Sukuk

Shahin A. Shayan

● Ijara, Salam, Mudaraba, Musharaka and other viableIslamic receivables or contracts backed by real & tangibleassets (asset based) can be securitized Islamically andhave their liquidity enhanced

● Combination or embedded options (Al Khiyar) in Islamare valid forms of contracts and could be used moreeffectively in Islamic Securitization designs

● Any form of Islamic Securitization design must exclude: Riba - a form of usury Gharar - a form of deception in trade or trading of risk where asymmetric

information and risk profile exists in a contractMaysir - highly speculative form of trade or gambling

Sukuk Securities

● Ijara, Salam, Mudaraba, Musharaka and other viableIslamic receivables or contracts backed by real & tangibleassets (asset based) can be securitized Islamically andhave their liquidity enhanced

● Combination or embedded options (Al Khiyar) in Islamare valid forms of contracts and could be used moreeffectively in Islamic Securitization designs

● Any form of Islamic Securitization design must exclude: Riba - a form of usury Gharar - a form of deception in trade or trading of risk where asymmetric

information and risk profile exists in a contractMaysir - highly speculative form of trade or gambling

Shahin A. Shayan

● Sukuk Instruments include: Short /Long Term Sukuks that are traded in the official

exchanges (secondary market trading). They can providethe necessary instruments and facilities to resolve theliquidity problems faced by most Islamic FinancialInstitutions Short/Long Term Sukuk instruments include: Ijara Sukuk (under two years)Musharakah Sukuk (under two years)Mudarabah Sukuk Salam Sukuk Istisna Sukuk

Sukuk Securities

● Sukuk Instruments include: Short /Long Term Sukuks that are traded in the official

exchanges (secondary market trading). They can providethe necessary instruments and facilities to resolve theliquidity problems faced by most Islamic FinancialInstitutions Short/Long Term Sukuk instruments include: Ijara Sukuk (under two years)Musharakah Sukuk (under two years)Mudarabah Sukuk Salam Sukuk Istisna Sukuk

Shahin A. Shayan

Sukuk issues have features that are different frommost bond issues. They are: Rights and obligations of the buyer and seller have to be

transparent and clear The income from securities must be related to the purpose

for which the funding is used Securities must be backed by real assets (asset based) as

opposed to paper and legal agreements

Sukuk Securities

Sukuk issues have features that are different frommost bond issues. They are: Rights and obligations of the buyer and seller have to be

transparent and clear The income from securities must be related to the purpose

for which the funding is used Securities must be backed by real assets (asset based) as

opposed to paper and legal agreements

Shahin A. Shayan

Attractiveness of investing in Sukuk instrumentsinclude: Priced competitively Sharia compliant Rated instruments Can be listed on an Exchange (enhance liquidity) Can vary in terms of available maturities (short to long) Can structure various risk/return profiles based on the

underlying assets

Sukuk Securities

Attractiveness of investing in Sukuk instrumentsinclude: Priced competitively Sharia compliant Rated instruments Can be listed on an Exchange (enhance liquidity) Can vary in terms of available maturities (short to long) Can structure various risk/return profiles based on the

underlying assets

Shahin A. Shayan

Structuring Sukuk TransactionsEligible Assets

A list of assets most commonly eligible for the creationof Sukuk certificates are: Ijara or Leasing Contracts Musharaka Contracts Mudaraba Contracts Salam Contracts Istisna Contracts Murabaha Contracts Muzara’a Contracts A portfolio of above Contracts

A list of assets most commonly eligible for the creationof Sukuk certificates are: Ijara or Leasing Contracts Musharaka Contracts Mudaraba Contracts Salam Contracts Istisna Contracts Murabaha Contracts Muzara’a Contracts A portfolio of above Contracts

Shahin A. Shayan

Structuring Sukuk TransactionsEligible Assets

A list of assets less commonly eligible for the creationof Sukuk certificates are: Muzara’a (sharecropping) Contracts Musaqa (irrigation) Contracts Mugarasa (agricultural) Contracts Various types of Certificates of ownerships Various forms of Participation certificates

A list of assets less commonly eligible for the creationof Sukuk certificates are: Muzara’a (sharecropping) Contracts Musaqa (irrigation) Contracts Mugarasa (agricultural) Contracts Various types of Certificates of ownerships Various forms of Participation certificates

Shahin A. Shayan

Sukuk Risks

● Sukuk Risks Include: Financial RiskCredit RiskMarket Risk Interest Rate, ROR or Inflation RiskCurrency RiskPrice or Equity RiskCommodity Risk

Liquidity Risk

Operational Risk which Includes Compliance, Legal& Reputation Risks and …etc

● Sukuk Risks Include: Financial RiskCredit RiskMarket Risk Interest Rate, ROR or Inflation RiskCurrency RiskPrice or Equity RiskCommodity Risk

Liquidity Risk

Operational Risk which Includes Compliance, Legal& Reputation Risks and …etc

Shahin A. Shayan

Large International Sukuk IssuancesCountryTenor

“Years”Value O/S“Billion USD”

Issuers

UAE5$3.520Nakheel Group

UAE12$3.500Dubai PortsAuthority

UAE5$2.530Aldar Properties UAE5$2.530Aldar Properties

UAE10$1.500DP World

Indonesia (New)10$1.500IndonesiaSovereign

UAE5$1.200DIFC

Hong Kong (New)51.000Hong KongSovereign

Shahin A. Shayan

Federal LandCommissioner

“Seller”

Issuer of the TrustCertificates

“Buyer”“Malaysia Global Sukuk Inc.”

InvestmentBanks

HSBC..

Ijara SukukPortfolio of Real Estate Assets

Leasing or Ijara SukukThe Case of Malaysia

Government ofMalaysia

Ijara Payments

Usage of the assets

“Master Ijara Contract”

Federal LandCommissioner

“Seller”

Issuer of the TrustCertificates

“Buyer”“Malaysia Global Sukuk Inc.”

InvestmentBanks

HSBC..

Financial Market orBuyers of Ijara

Sukuk

Ijara SukukCash

CashCash

RatingAgency,Moody’sand S&P

PayingAgent

Paymentsto the

CertificateHolders

RatingAgency

Fees

Management &Admin. Fees

Income from theportfolio

Rating AgencyRating

Shahin A. Shayan

General Sukuk Certificate features: Size $600 mm USD Maturity 5 years with Bullet Payment Islamic principle employed Ijara Contracts Rating Baa2 by Moody’s

BBB by S&P Issuer Malaysia Global Sukuk Inc. Asset Seller Federal Land Commissioner The Lessee Malaysian Government Regulatory First Islamic security to be

distributed under Reg. S and Rule144A (private placements)

Sukuk Case StudiesThe Case of Malaysia

General Sukuk Certificate features: Size $600 mm USD Maturity 5 years with Bullet Payment Islamic principle employed Ijara Contracts Rating Baa2 by Moody’s

BBB by S&P Issuer Malaysia Global Sukuk Inc. Asset Seller Federal Land Commissioner The Lessee Malaysian Government Regulatory First Islamic security to be

distributed under Reg. S and Rule144A (private placements)

Shahin A. Shayan

General Sukuk Certificate features – Cont…: Pricing date June 25th, 2002 Price US$LIBOR + 95 bps Other The deal was over subscribed

in a broad global range Lead Manager HSBC

Very Successful

Sukuk Case StudiesThe Case of Malaysia

General Sukuk Certificate features – Cont…: Pricing date June 25th, 2002 Price US$LIBOR + 95 bps Other The deal was over subscribed

in a broad global range Lead Manager HSBC

Very Successful

“REGULATION S”RULES GOVERNING OFFERS AND SALES MADE OUTSIDE THE UNITED STATES

WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933

Rule 144APrivate Resales of Securities to Institutions

Shahin A. Shayan

Government ofQatar

“Seller”

Ijara SukukParcel of Land

Government ofQatar

Ijara Payments

Usage of the assets

“Master Ijara Contract”

Issuer of the TrustCertificates

“Buyer”“Qatar Global Sukuk QSC”

Sukuk Case StudiesThe Case of Qatar

InvestmentBanks

HSBC & QIIB

Government ofQatar

“Seller”

Financial Market orBuyers of Ijara

Sukuk

Ijara SukukCash

CashCash

PayingAgent

Paymentsto the

CertificateHolders

RatingAgency

Fees

Management &Admin. Fees

Income from the ofParcel of Land

Rating AgencyRating

Issuer of the TrustCertificates

“Buyer”“Qatar Global Sukuk QSC”

InvestmentBanks

HSBC & QIIB

RatingAgency

“S&P”

Shahin A. Shayan

General Sukuk Certificate features: Size $700 mm USD Maturity 7 years with Equal Amortizing Payments

Islamic principle employed Ijara Contracts Rating A+ by S&P Issuer Qatar Global Sukuk QSC Asset Seller Qatar Government The Lessee Qatar Government Regulatory Distributed under Reg. S and Rule

903 (private placements)

Sukuk Case StudiesThe Case of Qatar

General Sukuk Certificate features: Size $700 mm USD Maturity 7 years with Equal Amortizing Payments

Islamic principle employed Ijara Contracts Rating A+ by S&P Issuer Qatar Global Sukuk QSC Asset Seller Qatar Government The Lessee Qatar Government Regulatory Distributed under Reg. S and Rule

903 (private placements)

Shahin A. Shayan

General Sukuk Certificate features – Cont…: Pricing date October 8th, 2003 Price US$ 6 mo. LIBOR + 40 bps Other The deal was over subscribed

in a broad global range Lead Manager HSBC & QIIB

Sukuk Case StudiesThe Case of Qatar

General Sukuk Certificate features – Cont…: Pricing date October 8th, 2003 Price US$ 6 mo. LIBOR + 40 bps Other The deal was over subscribed

in a broad global range Lead Manager HSBC & QIIB

“REGULATION S”RULES GOVERNING OFFERS AND SALES MADE OUTSIDE THE UNITED STATES

WITHOUT REGISTRATION UNDER THE SECURITIES ACT OF 1933

Rule 144APrivate Resales of Securities to Institutions

Very SuccessfulShahin A. Shayan

MusharakaPartner %x

“PCFC”

Investment orMusharaka Partner

%(1-x), Issuer of theTrust Certificates or

“FZCO”

Investment Banksor SellingManagers

MusharakaSukuk

Investment &Musharaka

Project

%x Income from theMusharaka Project

%(1-x) Income from theMusharaka Project

%x Asset

Contribution

Cash

Sukuk Case StudiesMusharaka Sukuk – PCFC/FZCO?

Was not Rated. With Rating and Insurance. is it Possible?

MusharakaPartner %x

“PCFC”

Investment orMusharaka Partner

%(1-x), Issuer of theTrust Certificates or

“FZCO”

Investment Banksor SellingManagers

Financial Market orBuyers of

Musharaka Sukuk“Trust Certificates”

TrustCertificates

Cash

Cash

PayingAgent Payments

to theCertificate

Holders

Management &Admin. Fees

%(1-x) Income from theMusharaka Project

InsuranceGuarantees

InsuranceCompany Insurance

Company Fee

Various

Agreements

Shahin A. Shayan

General Sukuk Certificate features: Size $3.52 Billion USD Maturity 2 years with 70% paid in cash and

30% in equity shares in a plannedInitial Public Offering of PCFCGroup

Islamic principle employed For general corporate activities,ongoing business developmentand expansion plans

Rating None Issuer Dubai’s Customs and Free Zone

Development Corporation (FZCO)– Local issue

Musharaka Partner PCFC

Sukuk Case StudiesThe Case of Dubai PCFC

General Sukuk Certificate features: Size $3.52 Billion USD Maturity 2 years with 70% paid in cash and

30% in equity shares in a plannedInitial Public Offering of PCFCGroup

Islamic principle employed For general corporate activities,ongoing business developmentand expansion plans

Rating None Issuer Dubai’s Customs and Free Zone

Development Corporation (FZCO)– Local issue

Musharaka Partner PCFCShahin A. Shayan

General Sukuk Certificate features – Cont…: Regulatory listed on DIFX Pricing date January, 2006 Price 250 to 350 bps + 2 year $/Libor

Swap rate Lead Managers Barclays Capital & Dubai Islamic

Bank

Sukuk Case StudiesThe Case of Dubai PCFC

General Sukuk Certificate features – Cont…: Regulatory listed on DIFX Pricing date January, 2006 Price 250 to 350 bps + 2 year $/Libor

Swap rate Lead Managers Barclays Capital & Dubai Islamic

Bank

Not So Successful

Shahin A. Shayan

Different Types of SukukMusharaka Sukuk

With Rating

MusharakaPartner %x

Musharaka Partner%(1-x), Issuer of

the TrustCertificates or

“SPC”

InvestmentBanks or Selling

Managers

MusharakaSukuk

Investment &Musharaka

Project%x Income from theMusharaka Project

%(1-x) Income from theMusharaka Project

%x Asset

Contribution

Cash

MusharakaPartner %x

Musharaka Partner%(1-x), Issuer of

the TrustCertificates or

“SPC”

InvestmentBanks or Selling

Managers

Financial Market orBuyers of

Musharaka Sukuk

“Trust Certificates”

TrustCertificates

Cash

Cash

PayingAgent

Paymentsto the

CertificateHolders

Management &Admin. Fees%(1-x) Income from the

Musharaka ProjectRatingAgency

InsuranceGuarantees

InsuranceCompany

Rating AgencyFee

InsuranceCompany Fee

Rating

Various

Agreements

Shahin A. Shayan

Different Types of SukukMudaraba Sukuk

With Rating

MudarabPartner %x

Investment Partner%(1-x), Issuer of

the TrustCertificates or

“SPC”

InvestmentBanks or Selling

Managers

MudarabaSukuk

MudarabaProject %(1-x) Income from the

Mudaraba Project

ManagementExpertise

CashFees or %x income for

Managing theMudaraba Project

MudarabPartner %x

Investment Partner%(1-x), Issuer of

the TrustCertificates or

“SPC”

InvestmentBanks or Selling

Managers

Financial Market orBuyers of

Mudaraba Sukuk

“Trust Certificates”

TrustCertificates

Cash

Cash

PayingAgent

Paymentsto the

CertificateHolders

Management &Admin. Fees%(1-x) Income from the

Mudaraba ProjectRatingAgency

InsuranceGuarantees

InsuranceCompany

Rating AgencyFee

InsuranceCompany Fee

Rating

Various

Agreements

Shahin A. Shayan

Different Types of SukukSalam Sukuk

With Rating

SalamSelling

Partner %x

Salam BuyingPartner

%(1-x), Issuer of theTrust Certificates or

“SPC”

InvestmentBanks or Selling

Managers

SalamSukuk

SalamProject %(1-x) Income from

Managing the SalamProject

ManagementExpertise

Cash%x Income from

Managing theSalam Project

SalamSelling

Partner %x

Salam BuyingPartner

%(1-x), Issuer of theTrust Certificates or

“SPC”

InvestmentBanks or Selling

Managers

Financial Market orBuyers of Salam

Sukuk

“Trust Certificates”

TrustCertificates

Cash

Cash

PayingAgent

Paymentsto the

CertificateHolders

Management &Admin. Fees%(1-x) Income from

Managing the SalamProjectRating

Agency

InsuranceGuarantees

InsuranceCompany

Rating AgencyFee

InsuranceCompany Fee

Rating

Various

Agreements

Shahin A. Shayan

NPC or otherGov’t Entities

“Seller”

Issuer of the TrustCertificates

“Buyer”“SPC”

InvestmentBanks

CIMB, HSBC,Hoda…..

Ijara SukukPortfolio of Plants & Equipments

Proposed Sukuk StructuresRaising Funds for NPC

Leasing or Ijara Sukuk (With Rating)

NPCIjara Payments

Usage of the Assets

“Master Ijara Contracts”

NPC or otherGov’t Entities

“Seller”

Issuer of the TrustCertificates

“Buyer”“SPC”

InvestmentBanks

CIMB, HSBC,Hoda…..

Financial Market orBuyers of Ijara

Sukuk

Ijara SukukCash

CashCash

RatingAgency,Moody’s,Fitch or

S&P

PayingAgent

Paymentsto the

CertificateHolders

RatingAgency

Fees

Management &Admin. Fees

Income from theportfolio

Rating AgencyServices

Shahin A. Shayan

• Islamic Financial Systems (IFS), Incorporate strong stabilizingand shock reducing structural features and distribute andmitigate the positive effects of expansionary and negativeeffects of recessionary economic and financial shocks (or risks)more evenly throughout the economy , leading to a moreresilient and stable economic structure.

• Micro-Finance Systems (MFS) are financial systems that providehigh quality financial services to SMEs and low to mediumincome and previously excluded individuals (at least a 4 billionglobal customer market) creating an effective and powerfulmodel for economic empowerment, development and povertyreduction visions.

Future Sukuk MarketsIslamic Microfinance Systems

• Islamic Financial Systems (IFS), Incorporate strong stabilizingand shock reducing structural features and distribute andmitigate the positive effects of expansionary and negativeeffects of recessionary economic and financial shocks (or risks)more evenly throughout the economy , leading to a moreresilient and stable economic structure.

• Micro-Finance Systems (MFS) are financial systems that providehigh quality financial services to SMEs and low to mediumincome and previously excluded individuals (at least a 4 billionglobal customer market) creating an effective and powerfulmodel for economic empowerment, development and povertyreduction visions.

Shahin A. Shayan

• Microfinance Institutes involved in providingMicrofinance services, using Islamic Financial meanssuch as Micro-Musharaka, Micro-Mudaraba and othertypes of Islamic Financial contracts can look into issuingSukuk securities to enhance their liquidity.

• The whole or part of the Microfinance Institute Portfoliocan be included in a Micro-Finance Islamic MusharakaSukuk or Mudaraba design to raise funds from themarket to enhance their goals and missions.

Future Sukuk MarketsIslamic Microfinance Systems

• Microfinance Institutes involved in providingMicrofinance services, using Islamic Financial meanssuch as Micro-Musharaka, Micro-Mudaraba and othertypes of Islamic Financial contracts can look into issuingSukuk securities to enhance their liquidity.

• The whole or part of the Microfinance Institute Portfoliocan be included in a Micro-Finance Islamic MusharakaSukuk or Mudaraba design to raise funds from themarket to enhance their goals and missions.

Shahin A. Shayan

• Through a Sukuk structure, the benefits of joint IslamicFinancial Systems and Financing needs can be utilizedand a proper link can be created to mobilize funds fromthe public for the Islamic development cause, economicempowerment and poverty reduction.

Future Sukuk MarketsOther Promising Areas

• Through a Sukuk structure, the benefits of joint IslamicFinancial Systems and Financing needs can be utilizedand a proper link can be created to mobilize funds fromthe public for the Islamic development cause, economicempowerment and poverty reduction.

Shahin A. Shayan

MF IslamicMusharakaPartner %x

“MFI”

MF Islamic MusharakaPartner

%(1-x), Issuer of theTrust Certificates or

“MFIMS 2005-1”

InvestmentBanks or Selling

Managers

MF IslamicMusharaka Sukuk

MF IslamicMusharaka

Projects%x Income from the MF

Islamic MusharakaProjects

%(1-x) Income from the

MF Islamic Musharaka Projects

%x Asset

Contribution

Cash

Sukuk Case StudyMF Islamic Musharaka Sukuk – Microfinance Institute (MFI)

With Rating and with Insurance. is it Possible? Yes

MF IslamicMusharakaPartner %x

“MFI”

MF Islamic MusharakaPartner

%(1-x), Issuer of theTrust Certificates or

“MFIMS 2005-1”

InvestmentBanks or Selling

Managers

Financial Market orBuyers of MF Islamic

Musharaka Sukuk

“Trust Certificates”

TrustCertificatesCash

Cash

PayingAgent

Paymentsto the

CertificateHolders

Management &Admin. Fees%(1-x) Income from the

MF Islamic MusharakaProjectsRating

Agency

InsuranceGuarantees

InsuranceCompany

Rating AgencyFee

InsuranceCompany Fee

Rating

Various

Agreements

Shahin A. Shayan

General Sukuk Certificate features: Size Depends on the Market Appetite Maturity 2+ Islamic principle employed Musharaka or Mudaraba Rating Preferably yes. Cost benefit analysis required Issuer MF Islamic Musharaka Partner (SPV) Musharaka Partner Micro Finance Institute (MFI) Domicile Domestic or International? Regulatory Preferably listed. Could be multi-juristiction Pricing date To be determined Price Spread over 2 year $/Libor Swap rate or…. Lead Managers Local & Int’l Investment Banks

Sukuk Case StudyMF Islamic Musharaka Sukuk – Microfinance Institute (MFI)

With Rating and with Insurance. is it Possible? Yes

General Sukuk Certificate features: Size Depends on the Market Appetite Maturity 2+ Islamic principle employed Musharaka or Mudaraba Rating Preferably yes. Cost benefit analysis required Issuer MF Islamic Musharaka Partner (SPV) Musharaka Partner Micro Finance Institute (MFI) Domicile Domestic or International? Regulatory Preferably listed. Could be multi-juristiction Pricing date To be determined Price Spread over 2 year $/Libor Swap rate or…. Lead Managers Local & Int’l Investment Banks

Shahin A. Shayan