Venture Capital

STRUCTURING ISLAMIC CAPITAL MARKETS & SUKUK INSTRUMENTS
*FULLY UPDATED*
11th - 13th October 2010, Kuala Lumpur
*SIDC CPE - accredited: 10 CPE points*

This fully updated 3-day course will cover in detail the principles of Islamic capital markets, the rationale for and structure of various Sukuk instruments, risk management, regulatory and legal issues, product innovation and development.

The knowledge and tools necessary to understand the fast-developing market for Islamic capital markets products will be imparted through the use of the following NEW case studies:

• Englotech Sukuk
• LEKAS (Lebuhraya Kajang Seremban)
• MRCB
• Jimah Energy Venture
• Sarawak Specialist Hospital
• IDB Sukuk
• Maybank Sukuk
• Binariang Junior Sukuk

For enquiries from Malaysia:
Indran Pannerselvam,
Phone +603 2162 7800 ext 25
This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Course Agenda

DAY ONE
Welcome
Introduction to Islamic Finance & Islamic Capital Markets

Why Islamic finance?

Important Shariah and Islamic finance principles
Islamic economics and Islamic finance
Theory of contracts – the basic framework of Islamic finance
Riba, gharar & forbidden transactions
Key criteria for structuring Islamic financial products
Review of key Islamic finance contracts
Key differences between Islamic and conventional finance
What are capital market activities?
The implications of Shariah principles on capital market activity
A brief history of the Islamic capital markets and what has been done
Introduction to Sukuk

What are Sukuk?
Definition and mechanics of Sukuk
How do Sukuk differ from conventional bonds?
Components, markets, players and growth
Core Sukuk Structure – Sale Based Sukuk

This section will examine the key characteristics, uses and issues for sale based Sukuk structures. Emphasis will be placed on identifying key obligations, cashflows, risk management and other important considerations. Each stage of the transaction will be described and diagrammed ensuring a clear understanding of each.

Sukuk Murabahah
AAOIFI definition of Sukuk Murabaha
Issues in Sukuk Murabahah – Bai Al-Inah & Bai Al-Dayn
Special Power Vehicle Sukuk Bai Al-Inah
Tawarruq as an alternative?
Unsecured vs Secured Sukuk Murabaha
Kapar Energy Venture
IDB Sukuk Al-Istismar – an approach to manage the issue of tradability in the secondary market
IDB 2003 & IDB 2005
Structure and Shariah issues
Practical Session: Delegates will split into groups to structure financing solutions for a client. Solutions to be presented to the class.

Review of Day 1 - Q&A

DAY TWO

Sale Based Sukuk continued:

Sukuk Salam
Sukuk Istisna
LEKAS (Lebuhraya Kajang Seremban)
MRCB
Jimah Energy Venture
Sarawak Specialist Hospital
Does combining Istisna’a & Ijarah contradict each other?
Tabreed Sukuk: A combination of Istisna’a & Ijarah. How did they do it?
Sale-Based Sukuk Exercise

Lease Based Sukuk:

Why is Sukuk Ijarah popular?
What does it represent?
Real deal examples:
Malaysian Global Sukuk – the birth of asset based Sukuk
TSH Sukuk Ijarah
Telekom Stapled Sukuk Ijarah
WCT Sukuk Ijarah
Golden Belt (Saad Group)
Dar al-Arkan
Government of Ras al-Khaimah UAE Sukuk
Indonesia Sovereign Sukuk
Forward lease structure:
Model 1 – forward lease as source of payment for Sukukholders:
- Al-Waha Petrochemical Plant & Red Sea Gate Terminal
Model II – Sukukholders pays forward lease
- Zam-zam Tower Sukuk Al-Intifa’
Secured vs unsecured asset based Sukuk Ijarah – what’s the difference
Lease Based Sukuk continued:

Asset Backed Sukuk Al-Ijarah
Hanco Caravan One Sukuk
Tamweel RMBS
Golden Crop
ABS Logistic
Dura Palm
Menara ABS
Issues in Sukuk Ijarah

Purchase and Sale Undertaking in Sukuk Ijarah – what’s the function?
Undertakings in Asset based & asset backed Sukuk Ijarah – how is it different?
Sukuk Ijarah Defaults – what are the rights of the Sukukholders?
Lease- Based Sukuk Exercise

DAY THREE

Equity Based Sukuk (EBS)

Sukuk Mudarabah
Pasir Gudang Municipal Mudarabah Sukuk
Cagamas Mudarabah Sukuk
Mukah Power Generation Mudarabah Sukuk
DP World Mudarabah Sukuk
Sukuk Musharakah
Gold Sukuk DMCC Musharakah Sukuko MRCB
The Investment Dar Sukuk Musharakah
IJN Capital Sukuk Musharakah
Lagoon City Sukuk Musharakah
Rantau Abang Sukuk Musharakah
Assar Chemcial Sukuk Musharakah
ADIB Musharakah Sukuk
Sukuk Wakala – Bukhtiar Investment Sukuk
Are these fixed income instruments?
Asset Backed Sukuk Musharakah
East Cameron
Musharakah One Capital
Cagamas MBS
AAOIFI’s comment on the equity based Sukuk
EBS defaults – what are the rights of the Sukukholders
Post- AAOIFI EBS:
Villamar Sukuk Musharakah
PLSA Sukuk Mudarabah + Ijarah
Lagoon City Sukuk Musharakah
Sun Finance Sukuk Mudarabah ABS
Bin Ladin Sukuk Mudarabah
Practical Sessions: Delegates will split into groups to structure financing solutions for a client. Solutions to be presented to the class.

Innovative Sukuk Structures & Issues

Exchangeable Sukuk
US$3.5billion PCFC Sukuk
US$3.52billion Nakheel Sukuk
US$850million Khazanah Exchangeable Sukuk
Other Important Considerations for Islamic Capital Markets

Rating of Sukuk
Secondary trading of Sukuk
The future challenges for the development of Sukuk
Practical Sessions: Delegates will split into groups to structure financing solutions for a client. Solutions to be presented to the class.

Islamic Equity Markets

Introduction to key concepts of Islamic equities
Various Shariah screening criteria
Islamic REITs
Islamic Exchange Traded Funds
Course Conclusion

Assessment: 45 minutes