Capital Markets & Securitization

• Types of Sukuk and comparison with conventional bonds and Asset Backed Securities
• Overview about recent issues of Sukuk and the market demand/subscription
• Overview of market growth, demand factors, and absence of secondary markets

Summary of Legal, Tax and Infrastructure Concerns for the Islamic Capital Markets

• Offering requirements for placements in the Middle East
• Trust and SPV rules, absence thereof
• Regulatory developments and differences from jurisdiction to jurisdiction
• Structural problems in the different key markets
• Role of the ratings agencies

CASE STUDY: SCECO – Structuring Challenges in Saudi Arabia

• True sale
• Bankruptcy remoteness
• Accounting de-recognition
• US – who has control
• UK – who has the risks and rewards
• Trust – by contract?

Rating Sukuk

• The questions and approaches taken by the rating agencies
• Examining prior cases to determine the ratings that could be applied

My Company, My Bank, My Deal Competition

• Interactive Sukuk issuance project to and team exercise
• Three unique projects will be presented and teams will be asked to define solutions, market steps and listing outcomes

Simple Derivatives relating to Sukuk – Current Shariah & Market Status

• Concepts as agreed among scholars
• Synthetic Islamic swaps
• Reasoning

Course Review

• What are the benefits for corporate and sovereign issuers? Western and Islamic issuers.
• Which sovereign or corporate is accepted as issuer in the market?
• Outlook: What is the market expecting?

Module wrap-up