financial management

International Sukuk Workshop

Examining International Asset Based vs. Asset Backed Sukuk and its Legal & Documentation Issues
Discover basic principles of islamic financing, through this workshop. Understand how Sukuk will define the islamic capital market. Be part of the discussion on the basic and latest Sukuk structures, including examination of the latest Sukuk rulings and overview of the issues in Sukuk defaults.

financial management

International Sukuk Workshop

Examining International Asset Based vs. Asset Backed Sukuk and its Legal & Documentation Issues

Sukuk and The World

Sukuk refers to trust certificates or participation securities that grant investors a share of the asset, including the cash flow and risks that commensurate from such ownership. Sukuk is proof of ones ownership title and is often utilised by financial institutions and corporations to raise cash. Both conventional bonds and Sukuk are structured in tandem with physical assets that generate revenue. However, unlike a bond, Sukuk can be designed from innovative applications of islamic financial contracts. leveraging various islamic principles, Sukuk can be structured in several ways to offer the issuing entity greater financial flexibility and options to meet its funding requirements. this programme offers particular scrutiny on the relative strength of asset Based Sukuk vis--vis asset Backed Sukuk. it is solidly grounded in Sukuk Origination and Structure; from basic principles of islamic financing, this programme will define the islamic capital market, explain the Sukuk issuance process and discuss the basics of contemporary Sukuk structures including examination of the latest Sukuk rulings and overview of the issues in Sukuk defaults. the workshop will also examine the intricacies of legal risk and uncertainties as well as jurisdictional peculiarities in international Sukuk issuances. there will also be a special section on islamic accounting which will explore the latest issues and developments in accounting for islamic Products and finance.

oBjEcTIvES after the workshop, participants will understand: Sukuk and its latest development, locally and internationally the Syariah concepts underlying islamic financing and Sukuk the cost and process of issuing Sukuk the Sukuk legal documents and its Syariah aspects the Securities commissions guidelines on Sukuk and current ownership issues in Sukuk defaults Sukuk and islamic accounting and its current issues METhoDoLogy touch base on the basics of underlying Syariah concepts, followed by the basics of Sukuk leading to current state of play. there will be case studies, group presentations and pop quizzes to test participants grasp of concepts. Who ShouLD ATTEnD accountants & auditors Bankers & credit Officers financial controllers & finance managers Senior managers & managers academicians Other interested individuals

FAcILITATor MuhAMMAD ZAhID ABDuL AZIZ muhammad Zahid started his career in an international accounting firm, arthur Young & co. london office in 1977. He returned to malaysia in 1982 and joined arab malaysian merchant Bank, Kuala lumpur. He joined Bank islam malaysia Berhad in 1990 where he pioneered and helped develop islamic corporate Banking, specialising in islamic Syndications and islamic Bond issuance. His last position at Bank islam was Senior manager, corporate financing Department. Whilst at Bank islam Zahid worked as part of the team that transacted the Klia Rm4.4 billion malaysian Sukuk in 1996a benchmark issue. He had arranged over Rm6.0 billion in islamic Bond issues during his tenure there. He left Bank islam in September 2000 to form a firm specialised in training and arranging of islamic financing and also an Sc approved Syariah adviser for Sukuk. Between July 2006 and march 2009 Zahid was based in Riyadh as Head of investment Banking & Sukuk Origination for al Bilad investment company ltd, a cma licensed wholly owned subsidiary of Saudi arabias Bank al Bilad. in april 2009 he returned to malaysia to resume his position as a financial consultant. He holds a Bachelors Degree in economics from University of exeter, United Kingdom.

financial management

International Sukuk Workshop

Examining International Asset Based vs. Asset Backed Sukuk and its Legal & Documentation Issues

courSE ouTLInE DAy onE ASSET BASED Sukuk: LocAL understanding Bond-Abled Islamic Financing Facilities islamic Syndications islamic facilities and the internal Rate of Return islamic Bond issuance Bai Bithaman ajil (BBa) / istisna Bond issuance Sukuk ijarah ijarah musyarakah Structure ijarah muntahiah Bit-tamlik understanding Principal Features of Islamic Bonds and its Latest Developments Principal features of Baids Principal features of icPs Principal features of imtns Principal features of musyarakah / mudharabah Bonds Project goldanalysing the structure and features of malaysias first islamic Sovereign issue. USD600 million Sukuk ijarah / trust certificate issuance on behalf of malaysia global Sukuk inc. Issuing an Islamic Bond/Sukuk eligibility of projects for islamic Bond financing Basic criteria for companies to be eligible to issue islamic Bonds the rating process and significance of ratings the issuance procedure / requirements advisors / consultants Detailed costs breakdowns Pricingislamic Bonds vs. conventional Bonds Period taken and timetable to financial close accounting entries for islamic Bond issuance Islamic capital Market Exercise / case Study computing face Value of Secondary notes Design an islamic Bond term sheet for a potential issuer Design, arrange and issue the first musyarakah Bond to be issued and traded in the country DAy TWo ASSET BASED Sukuk: InTErnATIonAL investment Dar Sukuk musharaka Sukuk ijara iDB Sukuk istithmar SaBic/Sec Saudi Sukuk Paka capital exchangeable Sukuk Bahrain Salam Sukuk accounting for SPVs and Sukuk musharaka. can we agree on an accounting Standard for ijarah? the purist versus the pragmatic approach to islamic accounting Standards. is aaOffi ahead of its time? Quranic basis for islamic accounting. can international Standards satisfy Syariah demands? audits must comply with Standards and Syariah concepts of al-aslu ibahah and Uruf tijari to support pragmatic approach serves and liquid assets. is marked to market islamic? Munshaat Forward Lease / Sukuk Al Intifa awqaf land and Developer, Ownership restrictions, ijara ain mousuffah Bil thimmah, time share, types of Sukuk intifa, Zam Zam tower, Darul al-Qeblah, madinah, alSafwa tower makkah East cameron gas Structure, termsheet, US gas fields, middle eastern Structurer musharaka Structure , cayman island issuer, US musharaka SPV, gcc & international Sukukholders, meeting Sharia,legal, tax, bankruptcy, corporate, regulatory, securities laws of multiple jurisdictions, first true securitisation Tamweel Structure, term sheet, Purchase of properties, istisna purchase, portfolio assets, trust assets, service agency, income overview of Issues in International Sukuk Defaults aaOffi Sukuk Rulings Oic fiqh academy Rulings asset Based vs. asset Backed Sukuk who survived? general Legal And Documentation Issues legal risks legal uncertainties is trust concept recognised in local laws? SPVs can it be incorporated? SPV characteristics independence, bankruptcy remote, which jurisdiction common law vs civil law Sukuk assets can it be transferred? Sukuk assets tax issues, prohibition on assignments, ownership risks, insolvency clawbacks and true sales, recharacterisation of structure. listing rules, regulations and tax laws Which jurisdiction? Islamic Accounting Syariah issues in accounting islamic financial transactions issues of recognition, measurement and disclosure accounting for Wadiah Yad Dhamanah and mudharabah deposits Questions of akad for Statutory Re-accounting for murabahah, BBa, ijarah, and ijarah muntahia Biltamlik

Asset Backed Ijara caravan Sukuk Background, term Sheet, Structure, legal & Sharia issues Documentation issues, SPVs and Jurisdictions, asset ownership limitations, true Sale and economic control, Sharia compliant tranching, Rating

International Sukuk Workshop

Examining International Asset Based vs. Asset Backed Sukuk and its Legal & Documentation Issues
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o 20 & 21 July 2011 (Wednesday & thursday) melia Hotel, Kuala lumpur contact tel fax email add : : : : : Zuraini 03 2279 9352 03 2273 5167 mpdc@mia.org.my malaysian institute of accountants Dewan akauntan no. 2, Jalan tun Sambanthan 3 Brickfields, 50470 Kuala lumpur

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ProgrAMME FEE SPonSorED STAFF 1 fee is payable to: Sponsoring member is required to indicate his/her name, designation and membership number a. MIA-MPDc for programmes in the Klang Valley and other locations (other than in item b); in the registration form. the sponsored staff must report directly to him/her in his/her firm or b. MALAySIAn InSTITuTE oF AccounTAnTS for programmes in Perlis, Penang, Kedah, company, but for the latter, not in a subsidiary or related company. Johor, Sabah and Sarawak. fee includes course materials, lunch and 2 tea breaks per day. In the absence of proof of sponsorship in writing, no alteration will be allowed after the admittance will only be permitted upon receipt of full payment. confirmation of acceptance of registration. Terms and conditions apply. Registration made by fax must be followed immediately by payment. cErTIFIcATE oF ATTEnDAncE AnD cPE hourS cAncELLATIon / TrAnSFEr all participants will be presented with a certificate of attendance upon full attendance and Upon registering, participant(s) are considered successfully enrolled in the event. Should personal completion of the programme. for mia members, the cPe hours will be credited into the participant(s) decide to cancel/transfer their enrollment; a cancellation/transfer fee will be levied. membership System within 2 weeks of the programme. Written cancellations/transfer notice received: DIScLAIMEr five (5) working days before the event, a refund (less administrative charge of 20%) will be made. malaysian institute of accountants (mia) reserve the right to change the speaker(s), date(s) and for no-show on the day of the event, no refund will be entertained. to cancel the programme should circumstances beyond its control arises. mia also reserve You can substitute an alternate participant(s) if you wish to avoid cancellation/transfer charges. the right to make alternative arrangements without prior notice should it be necessary to do any difference in fees will be charged accordingly. cancelled/transferred unpaid registrations so. Upon signing the registration form, you are deemed to have read and accepted the terms will also be liable for full payment of the registration fee. and conditions.