Certified Professional In Structuring & Issuing Sukuk

Sukuk, the Islamic version of bonds, have already been termed by practitioners as “the financial product” for deeper and broader Islamic capital markets. After only a few years since the first global Sukuk deal was launched, the global market for Sukuk is already running into hundreds of billions of dollars. 

No one in the world of modern finance be it conventional or Islamic can afford to ignore this dramatically growing sector of the market and its increasingly diverse instruments and products. This course aims at highlighting the salient features and challenges in structuring and issuing Sukuk. 

Not only Islamic financiers will benefit from this short and comprehensive workshop. Conventional financiers would also benefit extensively if they want to expand their client base to Islamic clients as well. 

This course has been exclusively designed to provide comprehensive and practical knowledge in structuring Sukuk. The course will enable the interested parties i.e. corporate bankers, treasury, investment bankers, fund managers, and trustee etc., to understand more about Islamic securitization and Sukuk. 

Presented by learned and experienced course leaders, this workshop will definitely give benefit and more confidence to the delegates about the distinct features of Islamic securities products and instruments.

Benefits:

• Acquire the knowledge of Shariah principles in Sukuk and securitization
• Understand the framework and structure of Sukuk and securitization
• Identify Sukuk products and instruments
• Analysis of current market practices and what products and structures are utilized, and why
• Developing new products for your clients and markets
• Structuring products from the building block of theory (Islamic law) through to the final end product
• Impact on each group of stakeholders (Scholars, structurers, legal, marketing, operations, risk, execution etc.)

Modules:

Module 1 -  Foundations Sukuk

• Introduction – Concepts and Definition
• Types of Sukuk Structures
• The Islamic Law Framework for Sukuk
• Structuring Islamic Debt-Based Sukuk – Murabahah, Istisna’ and Salam
• Structuring Equity-Biased Sukuk: Sukuk Al Ijarah
• Structuring Equity-Based Sukuk: Mudarabah and Musharakah Sukuk
• Nature and Features of Mudarabah Sukuk and Musharakah Sukuk
• Structuring Islamic Asset-Bascked Securities
• Other Exotic / Hybrid Sukuk
• Other Aspects to be Considered

Module 2 -   Sukuk – detailed analysis and transaction case studies

• Ijara. Mudarabaah, Musharakah, Murabahah, Wakala, Hybrid
• Perpetual Sukuk
• Equity-linked Sukuk (exchangeable, convertible Sukuk)
• Each structure will be covered, along with analysis of how and why the market developed to accommodate such structures
• How to develop debt capital markets products using classing contractual forms

The issue of Shariah compliance

•  Who does this responsibility fall upon
•   How is this managed in practice?
•   What are the implications?

Credit rating

• Why this can be important
•  The concept of credit risk vs asset price risk in asset-backed structures
•    The approach of credit ratings agencies

Defaults

• How are these defined
• What occurs upon a default?

Asset risk vs credit risk for investors

• The issue of a True Sale and Sukuk structures
• AAOIFI Shariah standards and Sukuk controversy
• How did this arise?
• What were the consequences for the market?
• Detailed case studies

Module 2 - The Sukuk market

• Introduction to Sukuk, from classical structures
• Modern use of Sukuk as equivalent to Islamic “bonds” and capital market instruments
• Analysis of the market development
• Increasing complexity of the Sukuk product
• The global adoption of Sukuk for both Islamic and non-Islamic players
• Domestic vs International Issuances, what points are considered and relevant
• Analysis of widely used structures:
• Ijara, Mudarabah, Wakalah, Musharakah, Murabaha etc
• What structure is the best and most relevant for issuers and investors
• Why are the various structures chosen over others?
• Using Sukuk for Project Finance
• Securitisation and Sukuk
• For each Sukuk structure, the following shall be covered
• Developing basic contractual forms into complex Sukuk instruments
• Detailed structure analysis and flows
• Credit enhancements and risk management
• Role of all parties involved (Issuer, agents, book runner, sales, issuer, Scholars, regulators)
• Review of documentation, the key contracts involved
• How to convert these structures into modern liquid capital market instruments?
• Pricing and related issues
• Asset backed vs Asset based Sukuk, why is this important
• Factors to be considered for both Sovereign and corporate issuers
• What is more relevant to domestic issuance and international issuance
• Economic factors considered
• Currency
• Tenor
• Fixed vs floating rate profit distributions
• Restructuring when required
• Default and early termination scenarios
• Use of Sukuk as liquid instruments
• How to ensure Sukuk issues remain liquid and tradeable
• Role of Scholars in the approval and ongoing auditing of Sukuk transactions over their life
• Use of Sukuk in Equity Capital markets
• Mezzanine finance
• Equity linked returns and risk
• Case Studies: There will be several case studies and analysis of the major and innovative Sukuk issuances and structures used in the markets