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STRUCTURING ISLAMIC CAPITAL MARKETS AND SUKUK INSTRUMENTS

+603 2162 7801 +601 2207 9201 +603 2162 7800 +603 2162 7820 Andrew.Morgan@REDmoneygroup.com

Course highlights
Comprehensive coverage of the Islamic capital markets and commonly used Sukuk structures An in depth understanding of Shariah and structuring issues surrounding Sukuk instruments Case study-driven sessions featuring the very latest Sukuk issuances in Malaysia and abroad Analysis of asset backed Sukuk securitization and subordinated Sukuk

Vice President, SHAPE Financial Corp

Expert Course Director Shabnam Mokhtar 21st - 23rd May 2012 KUALA LUMPUR

SIDC CPE - accredited: 10 CPE Points Visit www.MIFtraining.com today or call +603 2162 7800 for more information

Structuring Islamic Capital Markets and Sukuk Instruments

21st - 23rd May 2012, Kuala Lumpur Course Objectives
To define and analyse the mechanics of Sukuk and other Islamic capital markets instruments To gain a holistic understanding of the Islamic capital markets and Sukuk instruments To understand the crucial elements and features of the various Sukuk structures commonly used To examine and discuss recent case studies of successful Sukuk issuances in Malaysia and globally

Who Should Attend

This course is set at an intermediate level and is specifically designed to meet the needs of banking professionals, lawyers and Shariah scholars involved in Sukuk and Islamic capital markets activities. Regulators and heads of Finance within corporations will also find this comprehensive 3-day course highly beneficial.

Expert Course Director

Shabnam Mokhtar is currently the Vice President of SHAPETM Financial Corporation, a financial consulting firm based in Kuwait, specialising in financial advisory, consultancy and Islamic finance training. Prior to this, Shabnam was a researcher heading the Islamic Capital Market Unit with the International Shariah Research Academy (ISRA), an institution established by Bank Negara Malaysia (BNM) to promote applied research in the area of Shariah and Islamic finance. She also taught Islamic finance at University Putra Malaysia in addition to teaching accounting, bank management and financial management subjects. She was appointed as a member of MARCs Syariah Advisory Panel in August 2010. Shabnam has conducted many training programs on Islamic banking, Sukuk & Islamic capital market products, risk management and AAOIFI accounting for clients in the ASEAN region, East Asia, GCC and Europe. She has a strong appreciation of issues relating to regulatory and financial infrastructure development stemming from her attachment with BNMs Department of Islamic Banking and Takaful in 2008. Shabnam also served as an editor of MIF Monthly, a publication focusing on Islamic finance developments in Malaysia. After obtaining her Bachelor of Accountancy (First Class Honors) degree from University Putra Malaysia, Shabnam successfully earned her Master of Accounting degree with distinction from University of Illinois at Urbana Champaign, USA.

Course Agenda Day 1

Introduction to Islamic Finance & Islamic Capital Markets Theory of contracts the basic framework of Islamic finance o Riba, Gharar and forbidden transactions o Review of key Islamic finance contracts The implications of Shariah principles on capital market activities Definition and mechanics of Sukuk How do Sukuk differ from conventional bonds and securitization? 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 Murabaha vs Sukuk BBA vs Sukuk Bai al-Inah is there a difference? Case studies of different models of Sukuk Murabaha/BBA/Bai al-Inah: o Sale and buy back of completed assets: Sunway, RIM City o Sale of Mudarabah Interbank Investment: Cagamas, World Bank, IFC o Hibah, sale and buy back, re-hibah: Serrisa Sinar, Horizon Hills o Term Sheet Exercise: Tri-partied sale & Hawalah Glomac, Sunrise, Premium Nutrients Shariah Issues in Sukuk Murabahah Bai Al-Inah & Bai Al-Dayn Tawarruq as an alternative to manage primary market Shariah issue: Cagamas, Trans Thai Sukuk o Discussion: Is there a difference in both applications? IDB Sukuk Al-Istithmar as an alternative to manage secondary market Shariah issue Term Sheet Exercise: Sukuk ALim Hybrid (Commodity Murabaha + Ijara) Sukuk Murabaha default what are the rights of Sukukholders? Group exercise: Conventional banks issuing Sukuk? Sale Based Sukuk continued: Sukuk Salam - structure & tradability Sukuk Istisnaa in Malaysia: Jimah Energy Venture o What is the actual underlying structure? o How is the floating rate Istisnaa structured?

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Day 2
Istisna Sukuk continued: How do we combine Istisna & Ijarah Term Sheet Exercise: o RM500 million Bayu Padu Sukuk o RM340 million Borcos Sukuk Is Istisnaa Sukuk freely tradable? o US$200million Tabreed Sukuk Tabreed in trouble? What is Sukukholders right? Sale- Based Sukuk Group Exercise Lease Based Sukuk (LBS): Why is Sukuk Ijarah popular? Case studies of different models of asset based Sukuk Ijarah: o Sale and leaseback: Nakheel, Dar Al-Arkaan, Petronas o Lease and leaseback: Saxony, Golden Belt o Forward lease structure: Al-Waha, Zam Zam Tower o Pool of Ijarah asset: GE Sukuk is this securitization? Are all Sukuk Ijarah tradable? Why or why not? Secured vs unsecured asset based Sukuk Ijarah whats the difference Sukuk Ijarah Defaults what are the rights of the Sukukholders? Ingress Sukuk Ijara Nakheel Sukuk Golden Belt Sukuk LBS Group Exercise: Delegates will split into groups to structure financing solutions for a client. Solutions to be presented to the class. Equity Based Sukuk (EBS) Equity based Sukuk was (is) more popular than Sukuk Ijara. Why? Classification of EBS: o Based on underlying Shariah contracts Musharaka vs Mudaraba vs Wakala o Based on underlying activities: - General Obligation - Covered Sukuk - Asset Backed Sukuk Case studies of general obligation Sukuk: o Musharakah: PCFC o Mudarabah: DP World, IIG Kuwait o Do we have securities in these types of Sukuk?

Day 3
Equity Based Sukuk (EBS) continued: Case study of covered Sukuk three variations: Secured covered PG Municipal, KL Sentral, Assar Chemical Linked Sukuk ADIB, GFH, RAKIA Reference Sukuk (IDB), Gold Sukuk DMCC, Rantau Abang Sukuk in Saudi SABIC vs SEC Legal challenges - Secured covered becomes reference Sukuk - Lagoon City Sukuk Term Sheet Exercise: How will we characterize TID Sukuk? AAOIFIs comment on equity based Sukuk How these Sukuk complied with AAOIFI requirement: Villamar Sukuk Musharakah PLSA Sukuk Mudarabah + Ijarah Sun Finance Sukuk Mudarabah ABS Bin Ladin Sukuk Mudarabah EBS defaults what are the rights of the Sukukholders EBS Group Exercise: Delegates will split into groups to structure financing solutions for a client. Solutions to be presented to the class. Asset Backed Sukuk Securitization How are asset backed Sukuk (securitization) different from the previous deals? o True Sale accounting vs legal o Bankruptcy remoteness Asset Backed Sukuk Al-Ijarah Sale Based ABS Plantation Lease Based: o Sale & Leaseback ABS Logistic, Menara ABS o Pool of Ijara asset Hanco, Tamweel o Musharaka East Cameron vs Musharaka One Subordinated Sukuk Issued by bank for capital purposes: o Maybank Sale of pool of Ijara asset o Saudi Hollandi Bank Mudaraba o AmIslamic Musharaka Issued for Credit enhancement: o PLSA (Mudarabah & Ijarah), Mukah (Mudarabah & Istisnaa), o DHTI (Ijarah vs Murabaha) o Binariang (Musharaka vs Musharaka) Final exercise & Course Conclusion Assessment (Optional): 45 minutes 60 minutes This 3 day course on Structuring Islamic Capital Markets and Sukuk Instruments is offered as a module for the Certified Islamic Finance Analyst program. Delegates who are interested in certification will undertake a multiple choice assessment of 30-50 questions immediately after the course ends on Wednesday, 23rd May 2012. A mock test and exam guide will be provided earlier for interested candidates. Those who reach the passmark will be awarded a CIFA Certificate of Attainment for this module. All delegates will receive a Certificate of Attendance regardless of whether or not they undertake the assessment. PG

Visit www.MIFTraining.com today or call +603 2162 7800 for more information

Structuring Islamic Capital Markets and Sukuk Instruments

21st - 23rd May 2012, Kuala Lumpur

Contact us at Tel: +603 2162 7800 Fax: +603 2162 7810

1. Pricing & Discount

The pricing for this course is as follows:
I am booking: Register on or before 27 March 2012
th

Pricing RM 3,950 RM 4,180 RM 4,400

Register on or before 24th April 2012 Register After 24th April 2012 Please tick the box below if you wish to undertake the CIFA Assessment: Assessment (Optional) RM 450

Please note: A late booking fee of MYR 150 will be imposed on registration received within 14 days of the course start date. Fees include training materials, refreshments and lunch. Accommodation is not included.

2. Delegate details
Name Job Title Email address Telephone 1 _____________________________________ / ________________________________ / ____________________________________ / ______________________ 2 _____________________________________ / ________________________________ / ____________________________________ / ______________________
3 _____________________________________ / ________________________________ / ____________________________________ / ______________________ 4 _____________________________________ / ________________________________ / ____________________________________ / ______________________ 5 _____________________________________ / ________________________________ / ____________________________________ / ______________________

3. Who to invoice and contact?

Please tell us who we should invoice. It is also helpful for us to have the name of an administrator with whom we can liaise directly.
Contact person for invoicing: ......................................... Job Title: ......................................................... Email: ..................................................................... Tel: .................................... Fax: .................... Contact person to send administration details: .................................................................................................................................................................. Job Title: ........................................................ Email: ............................. Tel: ................................... Payment can be made by cheque or bank transfer. A notification will be sent to you once payment has been received. I wish to pay by: Cheque/bankers draft Telegraphic transfer Please note all telegraphic transfer fees are to be borne by the sponsoring organization.

4. Approving Manager

To process your registration we require the name and signature of a manager who is authorized by your organization to approve training expenditure. Name: ................................................ Job Title: .................. Organization name: .................................................................................................................................... Email: ................................................................... Tel: .................. Authorizing signature.(mandatory) Yes, I have read and understood the booking and cancellation policy below.

5. Send us your registration!

By email: info@miftraining.com By fax: +603 2162 7810 You may also book online at http://www.miftraining.com Please call us on: +603 2162 7800 or +603 2162 7802 if you require assistance. Our address is: REDmoney, 21/F, Menara Park, 12 Jalan Yap Kwan Seng, Kuala Lumpur, 50450, Malaysia Booking and Cancellation Policy important, please read carefully By completing and sending us this registration form you are confirming delegate places on the course. If delegates cannot attend the course replacement participants are always welcome. Otherwise delegates must request in writing (letter, fax or email) to cancel registration/s or transfer to a different course at least 21 days before the course start date to be eligible for a refund, less a 5% administration fee. Delegates who cancel within 21 days of the course start date, or who do not attend, are liable to pay the full course fee and no refunds will be given. Instead fees will be converted to a REDmoney course voucher equivalent to the original fee, less a 15% administration charge. This voucher is transferable within your organization and must be redeemed within one year of issue or become void. If a course is postponed for whatever reason delegate bookings will be automatically transferred to the new course date. Delegates who wish to transfer to a different course will be subject to the same terms as above and charged the difference in course fees. No refunds or course vouchers will be issued for a no-show. REDmoney reserves the right to amend the published program or speaker. In the event of course cancellation due to unforeseen circumstances, REDmoney is liable only to refund the cost of the course. Course Venue: Details & the venue will be sent to you upon registration. MIFT11275 /P