I would like to outline the procedures for raising Sukuk funds in Malaysia and London under the Global Sukuk.
A) Identifying a client with proposed major projects, preferably in the sectors of energy, real estate development, infrastructure, mining, oil and gas.
B) The budget must be from $ 100 million to prefer $ 500 million for the first sukuk and raise even more to the $ 1 billion limit after that.
A) The client must appoint us as a consultant for a fee to be agreed upon and pay on a gradual basis.
D) The customer will provide the project details including the cash flow of the budget for our review and comment, if any. Upon acceptance of the final document, we recommend the fund manager who will complete the aforementioned document for presentation to the bank
E) The customer must sign an agreement with the recommended fund manager to work on his behalf and deal with the bank and the relevant authority including the Malaysian Central Bank or the Bank of England depending on where the sukuk fund will be collected. Fund manager fees will be determined by them for consideration by the customer
F) Based on the approval of the selected bank that agreed to raise the sukuk to the customer through the designated fund manager, the bank will return to the competent authority for final approval.
G) The bank will announce the Sukuk Fund for potential investors for consideration within a limited period, usually for one month.
H) The bank will conclude the aforementioned instruments with interested and selected investors under strict supervision by the mentioned fund manager.
1) The fund will be transferred to the project account on a progressive basis based on a claim certified by the client through a specific project consultant and a turnkey contractor thereafter.
J) The fund manager will manage the fund until the full payment of the investors through the designated bank in accordance with the terms agreed upon by the participating participating parties.
I hope this gives an idea of the procedures we need to follow in the sukuk fund package deal.
The term sukuk and misconduct: The instrument is the one that writes custody, or the letter of acknowledgment of money, or that writes in transactions
Consequently, it is a written paper that proves to the bearer or owner of a right in money, and in the terminology of traditional financial thought they call the instrument as one of the securities as stated in Sharia Standard No. 17 issued by the Accounting and Auditing Organization for Islamic Financial Institutions. “Tawiruq: It is called coining and securitization, which is the division of assets from Notables or benefits, or both, into units of equal value, and issuance of sukuk at their value. The final statement of the 22nd Al-Baraka symposium held in 1423 AH / 2002 AD recommended choosing the designation of the alternative as a substitute for securitization in which the application is intended to convert debts into bonds, which is what the application actually takes In Islamic financial institutions. As for the definition established by the Islamic Fiqh Academy, it is: (Issuance of negotiable securities based on an investment project that generates income.
The definition of the sukuk at the Accounting and Auditing Organization for Islamic Financial Institutions is: Equal value documents that represent common shares in ownership of property, benefits, services, or in the assets of a particular project or private investment activity, after collecting the value of the sukuk, closing the subscription door, and starting using them for what they were issued for. • Sukuk is a tool that helps to transparency and improve the structure of information in the market, because it requires many procedures, and the entry of many institutions in the lending process, which provides more information in the market.
There are several roles for issuing Islamic bonds, including:
Mobilization of savings.
Easy flow of funds for investments.
Development in the range of Islamic financial instruments.
Expanding the stock market base.
The integration of the economies of Islamic countries with each other, and between them and the outside.
In the next stage, Zakat on the opposition instruments appeared, as the Global Sharia Committee for Zakat issued in April 2008 a fatwa stating that the money of the Sukuk documents that meet its Shariah regulations pay zakat on trade offers with the conditions of Zakat in them.
After that, the International Monetary Fund reaffirmed in the later stage in July 2008 the importance of Islamic sovereign (government) sukuk and also emphasized that the sukuk received more attention, whether from Muslims or others, and the Fund also stressed that the most prominent challenges facing the sukuk Are the laws and juristic disagreement
On the same date as the previous stage, Islamic lease sukuk appeared, as the European Fatwa Council issued a leasing contract for the benefits of notables, thereby enabling it to benefit from it through Islamic leasing sukuk, as it is considered one of the most flexible and controlled types of sukuk.
In Malaysia, the Islamic Financial Services Council in January 2009 described the structures of sukuk and its identification and clarify the various risks faced by financial services institutions in relation to Sukuk and the operational requirements related to Sukuk and Sukuk, and the Board also addressed exposure to Sukuk and maksah risks for the purposes of regular capital and to address mitigation Credit risk to the mismatch process in addition to addressing the credit enhancement provided by the issuer or originator and addressing the credit enhancement according to its structure
The motives for the minting process that leads financial institutions to issue investment instruments in the following points ():
1) Recycle the invested money without having to wait for the financial rights to be fulfilled for their various deadlines; Because molding helps to convert illiquid assets into liquid assets.
2) Reducing financing costs and risks; Because molding provides the ability to mobilize funding sources by obtaining new investors and then providing long or mid-term financing. Consequently, it is characterized by a low degree of risk due to the fact that the Sukuk are secured by in-kind guarantees, which are the assets. In addition, the dismantling process requires separating the dismantling portfolio and the ensuing guarantees from others
Privacy & Cookies Policy
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.