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Профессиональный Документы
Культура Документы
M. Kabir Hassan,
Rasem N. Kayed,
and Umar A. Oseni
Learning Objectives
Upon the completion of this chapter, the reader should be able
to:
1.
Understand what sukuk is, its historical origin and
benefits, and the distinguishing features of sukuk from
conventional bonds
2.
Understand how Islamic bonds are structured, and
distinguish between different types
3.
Be familiar with the AAOIFI standards on Islamic bonds,
and the characteristics of investment sukuk and Sharah
rulings defined by these standards
4.
Differentiate between sovereign and corporate ratings
of Islamic bonds, and the methodology used to rate products
Benefits of Sukuk
1. Among the best ways of financing large enterprises beyond
the ability of a single party to finance
2. Provide an ideal means for investors seeking to deploy
streams of capital and at the same time are able to liquidate
their positions with ease should the need arise
3. Manage liquidity for banks and Islamic financial institutions
4. A means for the equitable distribution of wealth
Secondary liquidity
Pricing benchmark
Sizeable financing
5.
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Figure 7.1:
Structure of
Mudarabah
Sukuk
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Musharakah Sukuk
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Musharakah Sukuk
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Ijarah Sukuk
Understand
how Islamic
bonds are structured, and
distinguish between
different types
Understand
how Islamic
bonds are structured, and
distinguish between
different types
how Islamic
bonds are structured, and
distinguish between
different types
Figure 7.3
Ijarah Sukuk
Transaction
Shar'ah compliance
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Political risk
Economic performance/projections
Structural assessment
Debt indicators
Credit Ratings
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
IIRA Ratings
The six basic categories used by IIRA in analysing sovereign
sukuk and the likelihood of any default on debt obligations
at maturity are:
-
Figure 7.4
First Page
of IIRA
Sovereign
Ratings of
Turkey in
2008
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Sovereign Ratings
Issuer Ratings
Bond/sukuk Ratings
Insurer Financial Strength Rating
Banks Financial Strength Rating
Shar'ah Quality Ratings
Corporate Governance Ratings
Real Estate Ratings
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Sovereign Ratings
Methodology
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Methodology
In rating the issuer:
- Non-financial organs rated with particular regards to credit
worthiness and continued ability to fulfil debt obligations to
stakeholders
- Overall financial and institution credit worthiness of issuer
determines level of investors confidence potential
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Bond/Sukuk Ratings
Methodology:
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
IIRA assesses:
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Banking Environment
Credit or Investment Policies and Loan Administration
Procedures
Portfolio Composition and Characteristics
Risk Management Practices
Lending History and Performance
Forecasting the portfolio and quality
Analytical conclusions regarding economic values
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Methodology
Market assessment
Consideration of factors determining asset quality
Liquidity and fund management
Asset/Liability management
Capital adequacy
Adjustments to achieve economic reality
Finance, information systems, planning disciplines
Earnings Performance
Ownership and management performance, reflecting all
the above
Emphasis on ability of financial institution to make
profits and pay dividends
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Differentiate between
sovereign and corporate
ratings of Islamic bonds,
and the methodology used
to rate products
Mudarib
Equity-based sukuk
Negotiable sukuk
Debt-based sukuk
Non-tradable sukuk
Rabb al-mal
Ijarah
Riba
Secondary market
Islamic financial
engineering
Sukuk
Tradable sukuk
Trust certificate
Junk bonds
Mudarabah Sukuk