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Investor Presentaiton

Sukuk in a nutshell • · Basic structure: Issuer issues Sukuk and collects proceeds from Sukuk Investors and uses those proceeds to acquire the Islamic asset(s) on behalf of Sukuk Investors. The Issuer then declares a trust over these proceeds and assets. Underlying asset: the underlying asset is another Islamic contract e.g. ijara or mudaraba hence the reference to sukuk al-ijara etc Basis of entitlement: The commercial exploitation of underlying assets. generates return for Sukuk Investors. Sukukholders are entitled to receive their share of profits generated by the asset and the proceeds of disposal of the asset at the end of the term. Redemption mechanisms: Typically most Sukuk are redeemed by the eventual sale of the underlying asset to the Originator. In a default, Sukuk Investors have the right to enforce a buy back agreement with the originator. (Legal documentation does not typically give Sukuk Investors powers to take over the underlying asset and dispose them). 7
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