Sukuk StructuringSIDC CPE - accredited: 10 CPE Points
About The Seminar
The Sukuk market has evolved significantly in the last 20 years. Total annual issuance in 2017 was $100 Billion, whilst Sukuk have been issued with maturities extending to 40 years. New and exciting structures have emerged to address the economic and financial needs of both Sukuk originators as well as Sukuk investors. Sukuk structures innovated to satisfy the needs of these communities are diverse. For example, Sukuk have been created which fulfill bank regulatory capital requirements. Sukuk have also been used to monetize intangible assets such as telecommunications airtime, and the rights to charge and collect fees from airlines.
This course provides an in-depth learning experience that directly benefits practitioners. It starts by first considering how Sukuk can be structured to satisfy the financial performance and risk objectives of originators and investors. It evaluates a plethora of features that can be incorporated into Sukuk structures to achieve target return performance within an established risk tolerance, as well as delivering financial flexibility and adherence to Shari’a requirements at the same time. It then undertakes case study analysis of Sukuk structures that span the entire market, basing classroom discussion around the motivations underlying the structures, and explaining their financial intricacies from origination through to dissolution / maturity.
The course will include a high level of interactive discussion, thorough instruction in Sukuk structuring principles, and the application of these principles to create novel Sukuk structures successfully sold into the market during the last 10 years. Knowledge gained by delegates from the course is directly applicable in practice.
KEY HIGHLIGHTS
- Understand the essentials of Sukuk structuring principles, and related Shariah rules
- Recognize the underlying risks in Sukuk and the methods to reduce those risks
- Examine the application of Sukuk structuring principles to actual Sukuk issuances
- Analyze any given Sukuk structure in terms of cash flow rights and obligations attaching to each participant/stakeholder from origination through to dissolution/maturity
- Evaluate various Sukuk issuances in the last 10 years
Date: 8th – 9th November 2018
Venue: InterContinental Kuala Lumpur
- CFOs, heads of finance, and finance officers
- CROs, risk managers, and risk analysts
- Treasurers and treasury managers
- Capital market transaction origination and structuring teams
- Fixed income portfolio and other fund managers
- Shariah advisory committee and research officers
- Product development officers
- Shariah department managers and officers
- Rating agency analysts
- Regulators
Early bird : RM2,700
Register before 28th September 2018
Standard : RM3,000 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22
Sukuk Structuring
Download Brochure
Date: 8th – 9th November 2018
Venue: InterContinental Kuala Lumpur
- CFOs, heads of finance, and finance officers
- CROs, risk managers, and risk analysts
- Treasurers and treasury managers
- Capital market transaction origination and structuring teams
- Fixed income portfolio and other fund managers
- Shariah advisory committee and research officers
- Product development officers
- Shariah department managers and officers
- Rating agency analysts
- Regulators
Early bird : RM2,700
Register before 28th September 2018
Standard : RM3,000 per delegate
If you are looking for an in-house training program or wish to send a group to an existing public program, kindly please contact Andrew Tebbutt at [email protected] or +603 2162 7802.
Learn More
Kindly complete the registration form and email to [email protected] or fax +603 2162 7810
About The Seminar
The Sukuk market has evolved significantly in the last 20 years. Total annual issuance in 2017 was $100 Billion, whilst Sukuk have been issued with maturities extending to 40 years. New and exciting structures have emerged to address the economic and financial needs of both Sukuk originators as well as Sukuk investors. Sukuk structures innovated to satisfy the needs of these communities are diverse. For example, Sukuk have been created which fulfill bank regulatory capital requirements. Sukuk have also been used to monetize intangible assets such as telecommunications airtime, and the rights to charge and collect fees from airlines.
This course provides an in-depth learning experience that directly benefits practitioners. It starts by first considering how Sukuk can be structured to satisfy the financial performance and risk objectives of originators and investors. It evaluates a plethora of features that can be incorporated into Sukuk structures to achieve target return performance within an established risk tolerance, as well as delivering financial flexibility and adherence to Shari’a requirements at the same time. It then undertakes case study analysis of Sukuk structures that span the entire market, basing classroom discussion around the motivations underlying the structures, and explaining their financial intricacies from origination through to dissolution / maturity.
The course will include a high level of interactive discussion, thorough instruction in Sukuk structuring principles, and the application of these principles to create novel Sukuk structures successfully sold into the market during the last 10 years. Knowledge gained by delegates from the course is directly applicable in practice.
KEY HIGHLIGHTS
- Understand the essentials of Sukuk structuring principles, and related Shariah rules
- Recognize the underlying risks in Sukuk and the methods to reduce those risks
- Examine the application of Sukuk structuring principles to actual Sukuk issuances
- Analyze any given Sukuk structure in terms of cash flow rights and obligations attaching to each participant/stakeholder from origination through to dissolution/maturity
- Evaluate various Sukuk issuances in the last 10 years
Seminar Agenda
- What are Sukuk, and how are they different to conventional
bonds? - What is structuring and why structure Sukuk?
- Requirements of the Sukuk Originator
- Requirements of Sukuk investors
- Securitisation process, and the flow of funds, by instrument type:
- Murabahah Sukuk
- Salam Sukuk
- Ijarah Sukuk
- Istisnah Sukuk
- Mudharabah Sukuk
- Musharakah Sukuk
- Manafa’a Sukuk
- Wakalah Sukuk
- Istithmar Sukuk
- Shariah principles governing Sukuk structures
- Financial Performance
- Commitment to repurchase at maturity
- Liquidity facility
- Third party guarantees
- Flexibility
- Tradability
- Rate resets
- Embedded Call options
- repurchase price at book value or market value
- option to redeem perpetual Sukuk
- option to exchange Sukuk for shares
- Embedded Put options
- termination option in diminishing musharaka
- Reducing Risk
- Excess Spread
- Over-collateralization
- Dissolution triggers and use of reserves
- Role of Takaful
- Cash flow profile
-
- Fixed versus variable rate coupons
- Pre-funding of Sukuk coupons
-
- Kingdom of Saudi Arabia $9 Billion issued April 2017
- Maybank Tier II Sukuk issued April 2014
- Central Bank of Bahrain Salam Sukuk certificate series
- Government of Dubai $5 Billion trust certificate programme
- Kingdom Installment Company LLC $18 Million fixed rate Sukuk issued July 2006
- Abu Dhabi Islamic Bank $1 Billion Additional Tier 1 Capital certificates issued Nov 2012
- Meezan Bank PKR 6 Billion (plus PKR 2 Billion Option) issued Sep 2016
- Rawabi Vallianz SAR 1 Billion Sukuk Al Musharakah 5-year maturity issued Feb 2016
- Saudi Aramco Musharakah/Ijarah Sukuk issued April 2013
- Ooredoo $2 Billion trust certificate programme
- DP World $3 Billion trust certificate programme
- Ezdan Holding Group (Qatar) issued in May 2016 (underlying Ijarah and Murabahah)
- Khazanah Nasional Berhad $399 Million Exchangeable Sukuk issued Sep 2016
- Kuveyt Turk Participation Bank $350 Million Tier II Sukuk issued Feb 2016
- Export-Import Bank of Malaysia Wakalah bil Istithmar Sukuk issued 2014
- Dar Al-Arkan Real Estate Development Company $1.8 Billion trust certificate programme
SEMINAR SPEAKER
Dr Ken Baldwin
Former Director Financial Policies & Planning, Islamic Development Bank
Dr. Ken Baldwin has worked as a practitioner in banking and finance for over 25 years in senior positions spanning the front and middle offices. Having graduated from Oxford University with a first-class honors degree in Physics in 1989, he qualified as a Chartered Accountant with PWC, before joining UBS, and then later Credit Suisse, in derivatives risk and control functions based in London.
He gained a PhD in the microeconomic theory of risk sharing in Islamic contracts, and worked in the GCC for 15 years in Islamic retail and Islamic investment banks. Whilst at Abu Dhabi Islamic Bank, Dr. Ken built an ALM analytic technology platform capable of capturing liquidity and interest rate risks inherent in the many varied Islamic financing products used at retail and corporate levels. He then moved to take up the position of MENA Regional Head of Quantitative Analysis for Citigroup. At Citicorp, Dr. Ken worked on structuring complex products used by Gulf-regional corporations to hedge FX and interest risks. Still residing in Bahrain, Dr. Ken then joined Investcorp, where he worked on the risk due diligence of corporate private equity and real estate private equity transactions and portfolio management. After leaving Investcorp, he set up the risk management department for venture capital bank, providing Basel III compliance and deal analysis for the bank. He then operationalized a new Islamic investment bank as its Chief Operating Officer for 3 years, before his most recent industry role at the Islamic Development Bank, where he set up and ran a new department tasked with developing Financial Policies and Planning underpinned by robust financial analytic tools and methodologies designed specifically for the IDB. Dr. Ken is currently a senior university lecturer in finance in the UK. He has published quantitative finance articles in peer-reviewed academic journals including the Journal of Risk, and during his earlier career, taught CFA and FRM professional certifications as a pastime for the Bahrain Institute of Banking and Finance.
For enquiries please contact:
Normariya Sariman
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 44
Ramesh Kalimuthu
Events Sales Director
[email protected]
Direct Line: +603 2162 7800 ext 65
Fax: +603 2162 7810
For sponsorship & speaking opportunities:
Andrew Tebbutt
Managing Director
[email protected]
Direct Line: +603 2162 7802
For marketing and media enquiries
Govina Selvanthran
Marketing Manager
[email protected]
Direct Line: +603 2162 7800 ext 22