The sale and leaseback sukuk structure is the most widely used, as it has been tried, tested, and accepted by most Shariah scholars, both in the Gulf region and Asia. All sovereign sukuks issued to date have been based on the sale and leaseback structure. The documentation is fairly standard, with a broad consensus among Shariah scholars and Shariah Boards.
The sukuk-al-ljara (sale and leaseback structure) has the following characteristics: Continue reading What is Sukuk-al-Ijara ( Sale and leaseback structure)
Sukuk definition:
The sukuk concept is based on the premise that any Islamic financing contract representing ownership of a tangible asset can be bought or sold, and hence can be structured in the form of tradable securities.
A sukuk represents:
An undivided proportionate beneficial ownership interest in an asset or portfolio.
The corresponding right to the Islamically acceptable income streams generated by the asset or portfolio.
A sukuk is similar to a conventional bond in most respects – such as trading, listing, and rating – but is structured in a Shariah-compliant manner. The sukuk structure has several advantages, one of which is that it provides access to a growing Islamic liquidity pool in addition to the conventional investor base.
Different Types of Sukuk:
A sukuk can be structured in a number of ways, depending on its underlying assets and business purpose. Some of the generic sukuk structures used for international sovereign and corporate structures are: Continue reading What Is Sukuk, Types Of Sukuk, And Characteristics Of Sukuk
In line with Malaysia’s aspiration to internationalize Bursa Malaysia as the Islamic investment centre, recently there is this foreign listing of US$500 million (RM1.7 billion) sukuk issued by GE Capital.
Details:
The five-year Islamic bond is structured based on the globally accepted Syariah principle of Sukuk Al Ijara.
First foreign sukuk listing on Bursa Malaysia and hope to see [...]
The emergence of the Islamic capital market in 2002 with the inaugural sukuk issued by the Malaysian Governement spearheaded the capital markets exponentially as it became the blue print to an increasing variety of instruments which can be used to create an efficient Islamic portfolio in line with portfolio theory and financial planning.
Increasingly, many companies have [...]
FCCA,CA(MIA)with more than 26 years of post-qualifying working experiences. Previous working stints with one of the big accounting four, Regional GFC & Group Treasurer in a group of Malaysian and Group CFO in Singapore public listed concern.
Also author to another very popular free educational accounting cum finance blog: http://basiccollegeaccounting.com under the branding of College Accounting Coach.
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