Islamic Bonds: your guide to structuring, issuing and investing in sukuk

Erscheinungsjahr 2004
ISBN: 978-1-84374-128-2
Verlag: Euromoney

Buch, Englisch, 178 Seiten

The book is essential reading for both those unfamiliar with Islamic finance applications, and includes advanced structures for those involved in structuring sovereign or corporate sukuk issues.

Sukuk are the crest of a new wave of innovation in Islamic finance and so Islamic Bonds Your Guide to Issuing, Structuring and Investing in Sukuk is a comprehensive guide that will ensure you understand:

The nature of sukuk, how they differ from Western bonds, the development of the sovereign & corporate sukuk market
How to structure sukuk transactions, including eligible assets, investment vehicles, undertakings & credit enhancement
Sovereign sukuk applications including MBS, project finance and B.O.T.
Applications in leasing finance, hedging and risk transference, banking and liquidity management, real estate & REITs
Regulation, legal and taxation issues

Autoren/Hrsg.

Adam, Nathif J

Thomas, Abdulkader

Fachgebiete

• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Anlagen & Wertpapiere
• Wirtschaftswissenschaften Finanzsektor & Finanzdienstleistungen Internationale Finanzmärkte
• Wirtschaftswissenschaften Betriebswirtschaft Unternehmensfinanzen Finanzierung, Investition, Leasing
• Geisteswissenschaften Islam & Islamische Studien Islam & Islamische Studien

Inhaltsverzeichnis

Islamic Bonds: Your Guide to Issuing, Structuring and Investing in Sukuk

Contents

Author biographies
Acknowledgments
Foreword, Khalid Abdulla Al Bassam, Deputy Governor, Bahrain Monetary Agency, Bahrain
View of a Shari‘a scholar, Yusuf Talal DeLorenzo, Shari‘a Scholar and Director, Yasaar Ltd, London

Overview of the sukuk market, Professor Rodney Wilson
Institute for Middle Eastern and Islamic Studies, University of Durham, United Kingdom
The contents
The legitimacy of sukuk
Why have Islamic bonds?
Salam securities
Ijarah bonds
Istisna’a bonds
Potential for mudaraba and musharaka bonds
The Malaysian sukuk experience
Bahrain’s sovereign sukuks
Case study: Qatar Global Sukuk
Scope for sovereign sukuk in Saudi Arabia
Potential for corporate sukuk
Introduction
Sukuk: new blood for emerging markets
Structure of the book

1: Investment in Islam
Introduction
The Shari’a’s alternative approach to financial governance
The prohibition of riba
Encouraging commerce
Rules relating to settlement
Innovations facilitating modern investing
Asset and liability management
Flexible instruments and alternatives
Conclusion

2: Sukuk: origins and distinctiveness
Introduction
The Arabic meaning of sakk or sukuk
Historical references to sukuk
Sukuk in hadith and Islamic commercial literature
Applying historical lessons to modern securities
The Malaysian exception
Sukuk in contrast with conventional fixed-income instruments
Sukuk compared with derivatives
Conclusion

3: Structuring sukuk transactions
Introduction
Eligible assets
Issuer/vehicle selection
Securitisation of Islamic mortgage alternative transactions
Transfer of asset ownership to the issuer
The underlying agreement
Purchase and sale undertakings
Means of transfer
Credit enhancement
Rating sukuk
Conclusion

4: Sovereign sukuk: applications and implications
Introduction
Public-sector sukuk applications
Landmark sovereign sukuk issuances
Cross-border convergence
Unlocking new sovereign markets
Sukuk applied to risk management
Project finance sukuk
Revenue securitisation under build-operate-transfer sukuk
Future considerations: domestic sukuk markets
Conclusion

5: Sukuk applied to corporate finance and real estate
Introduction
The evolution of leasing sukuk
Salam sukuk
New opportunities in the corporate sector
The contribution of conventional institutions
Liquidity management for Islamic banks
Contemporary Islamic risk-sharing contracts
Product diversity in the real estate markets
General sukuk applications for real estate
Residential real estate in North America
Re-engineering leveraged real estate
REITs and sukuk
An innovative real estate application
Growing investor awareness and confidence
Conclusion

6: Enabling infrastructure
Introduction
Creating a regulatory framework
Choice of law
Issuance possibilities under different legal formats
US sukuk considerations
Asset-backed securities opportunities
Generic problems under advanced tax regimes
Settlement
Credit rating
Selling practices
Conclusion

7: Conclusion
Distinct features
Important steps
Innovation in real estate
Need for more alternatives and increased infrastructure
Proactive sovereigns
A demand-driven market
The Islamic alternative – a paradigm shift
Increasing convergence

8: Glossary of Islamic financial and related terms