Download Brochure

PROGRAM INTRODUCTION

The Sukuk market has evolved significantly in the last 20 years. New and exciting structures have emerged to address the economic and financial interests of both Sukuk originators as well as Sukuk investors. However, a tension exists between this objective and conformity with Shariah principles. To satisfy market demand, many Sukuk instruments are structured to provide cash returns resembling conventional products. Some financial obligations within these structures may not only compromise a stricter application of Shariah principles, but impact Sukuk risks in ways that are generally less well understood.

This online program provides delegates with an invaluable opportunity to understand how Sukuk products are structured and how risks are created due to the financial profile of underlying assets as well as the Sukuk structure itself. Delegates will also learn how, and why, Sukuk are viewed differently by various important stake holders in the Sukuk market, for example ratings analysts, investors, and origination teams.

The program will include a high level of interactive discussion, analysis of case studies, and thorough instruction in the treatment of Sukuk for structuring and risk management purposes. Knowledge gained from the program is directly applicable in practice.

KEY LEARNING OUTCOMES

  • Understand the essentials of Sukuk structuring principles
  • Assess how structuring principles are applied using real-life case studies
  • Understand how risks arise in Sukuk and how they are mitigated in practice

Fee

1 participant: RM950
2 participants: RM855 per participant
3 participants: RM810 per participant
4 participants: RM760 per participant
5 participants: RM715 per participant

Early Payment Discount: Payments made on or before 3rd June will receive a 5% discount
* Further attractive packages are available for groups of more than five. Please contact us directly

In-house/group training

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

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

Online Delivery

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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

Tiviaa James
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 62

SAMPLE EXERCISE

Who Will Benefit

This course is designed to be of most benefit to:

  • Chief financial officers, heads of finance and finance officers
  • Chief risk officers, risk managers, and risk analysts
  • Treasurers and treasury managers
  • Compliance and audit professionals
  • Capital market transaction origination and structuring teams
  • Fixed income portfolio and other fund managers
  • Ratings agency analysts
  • Regulators and surveillance

Program Format

This two-part training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment

AICB_6_CPD-Hours-OL

Download Brochure

PROGRAM INTRODUCTION

The Sukuk market has evolved significantly in the last 20 years. New and exciting structures have emerged to address the economic and financial interests of both Sukuk originators as well as Sukuk investors. However, a tension exists between this objective and conformity with Shariah principles. To satisfy market demand, many Sukuk instruments are structured to provide cash returns resembling conventional products. Some financial obligations within these structures may not only compromise a stricter application of Shariah principles, but impact Sukuk risks in ways that are generally less well understood.

This online program provides delegates with an invaluable opportunity to understand how Sukuk products are structured and how risks are created due to the financial profile of underlying assets as well as the Sukuk structure itself. Delegates will also learn how, and why, Sukuk are viewed differently by various important stake holders in the Sukuk market, for example ratings analysts, investors, and origination teams.

The program will include a high level of interactive discussion, analysis of case studies, and thorough instruction in the treatment of Sukuk for structuring and risk management purposes. Knowledge gained from the program is directly applicable in practice.

KEY LEARNING OUTCOMES

  • Understand the essentials of Sukuk structuring principles
  • Assess how structuring principles are applied using real-life case studies
  • Understand how risks arise in Sukuk and how they are mitigated in practice

SAMPLE EXERCISE

Who Will Benefit

This course is designed to be of most benefit to:

  • Chief financial officers, heads of finance and finance officers
  • Chief risk officers, risk managers, and risk analysts
  • Treasurers and treasury managers
  • Compliance and audit professionals
  • Capital market transaction origination and structuring teams
  • Fixed income portfolio and other fund managers
  • Ratings agency analysts
  • Regulators and surveillance

Program Format

This two-part training program will be delivered online through a stable, secure and free-to-access platform. The program itself will be delivered through lectures, worked examples and case studies in order to ensure a detailed and practical understanding of the program content. Participants will have plenty of opportunity to ask questions and interact with the program director. Login details and program materials will be sent to participants upon receipt of payment

Fee

1 participant: RM950
2 participants: RM855 per participant
3 participants: RM810 per participant
4 participants: RM760 per participant
5 participants: RM715 per participant

Early Payment Discount: Payments made on or before 3rd June will receive a 5% discount
* Further attractive packages are available for groups of more than five. Please contact us directly

In-house/group training

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

Manual Registration

Kindly complete the registration form and email to [email protected] or fax +603 2162 7810

Online Delivery

AGENDA

Part 1: 10th June, 2.00pm – 5.00pm

Structuring and Origination

Overview of Sukuk
  • What Sukuk are and what Sukuk are not
  • How are Sukuk different to conventional bonds?
  • Can Sukuk be traded? If so, what are the Shariah requirements?
  • Are Sukuk on- or off-balance sheet?
    • Asset-backed Sukuk
    • Asset-based Sukuk
Sukuk Origination
  • Securitization process based on type of underlying financial instrument
  • Fair valuation of Sukuk in the context of market demand and supply
  • Portfolio selection: how to choose underlying assets
    • Investor demand
    • De-risking the originator’s balance sheet
    • Tradability requirements
Sukuk Structuring
  • Performance enhancements
    • Irrevocable commitment to repurchase at maturity
    • Liquidity facility
    • Third party guarantees
  • Flexibility
    • Embedded call and put options
    • Rate resets and break clauses
  • Risk reduction
    • Excess Spread
    • Over-collateralization and tranching
    • Role of Takaful
  • Pre-funding of Sukuk coupons
Case Studies:

Several real-life examples of Sukuk will be used to explain how the structuring concepts related to performance enhancement, flexibility, and risk reduction are applied in actual Sukuk issuances.

Part 2: 11th June, 2.00pm – 5.00pm

Risk Management

Risks Arising in Sukuk: Investor
  • Murabahah Sukuk
  • Salam Sukuk
  • Ijarah Sukuk
  • Istisnah Sukuk
  • Mudarabah Sukuk
  • Musharakah Sukuk
Risks Arising in Sukuk: Originator
  • Market liquidity risk in traded Sukuk
  • Funding liquidity risk and MTN programs which use Sukuk for Balance Sheet funding
  • Liquidity facility: is it necessary?
Other Types of Risks in Sukuk
  • Shariah non-compliance risk
  • Accounting and de-recognition risks
  • Operational risk
  • Project completion risk
  • Business risk
Capital Charges for Sukuk Instruments
Program Wrap-up and Final Discussion

EXPERT COURSE DIRECTOR


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.

Ken is a British Muslim.


Accreditation: This program is accredited with 6 CPD hours by Asian Institute of Chartered Bankers.

For enquiries please contact:

Mathias Sosovele
Account Manager, REDmoney Seminars
[email protected]
Direct Line: +603 2162 7800 ext 25

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

Tiviaa James
Marketing Executive
[email protected]
Direct Line: +603 2162 7800 ext 62