Islamic Capital Market

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ICM Series: The Sukuk Market

ICM Series: The sukuk market

Dates:  6 October - 7 October 2018 (8.30am - 5.00pm) 
Venue: Securities Commission Malaysia
Accreditation: SIDC CPE-approved: 10 CPE points


The Islamic capital market grew 11.9% to RM1.9 trillion in 2017. This segment accounted for close to 60% of the overall capital market. The Islamic capital market maintained its leading position globally with 38% of global sukuk issuances.

  • Programme Delivery

    Programme Objective

    This programme will enable participants to discover sukuk as an alternative means of financing and investment. This module will cover the regulatory framework, structures, features, concepts and issues pertaining to sukuk issuances. The latest in the development of sukuk will also be discussed including new financing objectives in terms of socially responsible investing (SRI) and green sukuk.

    Learning Outcomes

    By the end of this programme, participants will be able to:
    • describe the distinctive characteristics of Sukuk;
    • explain the Shariah and regulatory framework applicable to Sukuk market;
    • examine the various types and structures of Sukuk and their underlying contracts;
    • analyse the different Sukuk structures; and
    • review issues and challenges in issuance and structuring of Sukuk.

    Topics Covered

    • Overview of Islamic Securities (Sukuk)
    • Types of Sukuk and its Salient Features
    • Modes of Issuing Sukuk
    • Capital Guarantee
    • Analysing Sukuk Structures
    • Sukuk Rating: General Approach, Criteria & Methodology
    • Other General Rating Approaches

    Target Audience

    Individuals
    Professionals or industry practitioners in the capital market, ICM and academia.
     
    Institutions
    Asset management companies, advisory firms, legal firms, accounting firms,  stockbroking firms, investment banks, insurance companies, public listed companies and SMEs.

    Competencies

    FOP04 - Foundational (Product Knowledge) -  Islamic Capital Market Products
    FOR05 - Foundational (Regulatory Knowledge) - Islamic Capital Market Regulations 
  • Programme Outline

    DAY 1
    8.30 am Registration
    9.00 am
     
    Overview of Islamic Securities (Sukuk)
    • Evolution and Sukuk as a component of the Malaysian financial system
    • Features and characteristics of Sukuk vis a vis bond
    • The Shariah and regulatory framework for Sukuk and related legal documentations
     
    Speaker: Zairulnizad Shahrim, Director of Islamic Markets, AmInvestment Bank Berhad
    10.30 am Refreshments
    11.00 am
     
    Modes of Issuing Sukuk
    • Debt based vs partnership based
    • Asset based and asset backed
    • Musharakah Sukuk: structure, specific legal issues and examples
    • Mudarabah Sukuk: structure, specific legal issues and examples
    • Investment Sukuk
    • Wakalah based Sukuk
    • Tradability
     
    Speaker: Zairulnizad Shahrim, Director of Islamic Markets, AmInvestment Bank Berhad
    12.30pm Lunch
    2.00 pm
     
    Modes of Issuing Sukuk (continued)
    • Other Sukuk: Wakalah, Salam & other exotic Sukuk
    • What are MTNs?
    • Advantages
    • Examples
      • CCP (Corporate Commercial Papers)
    • Advantages
    • Examples
     
    Speaker: Zairulnizad Shahrim, Director of Islamic Markets, AmInvestment Bank Berhad
    3.30 pm Refreshments
    3.45 pm
     
    • Pricing and distribution
    • Understanding Principal Terms and Conditions (PTC)
    • Preparing submission to SC
     
    Speaker: Zairulnizad Shahrim, Director of Islamic Markets, AmInvestment Bank Berhad
    5.00 pm End of Session

    DAY 2
    8.30 am Registration
    9.00 am
     
    Sukuk Rating: General Approach, Criteria & Methodology
    • Role of credit rating agencies
    • Use and benefits of credit rating
    • Rating approach to Sukuk issues
     
    Speaker: Ruslena Ramli, Head of Islamic Finance, RAM Ratings
    10.30 am Refreshments
    11.00 am
     
    General Rating Approaches
    • Rating scale
    • Rating definition
    • Rating outlook and rating watch
    • Discussions of case studies
     
    Capital Guarantee
    • Types of guarantee
    • Shariah rulings
    • Capital guarantee on various sukuk structures
    • Discussion of examples
     
    Speaker: Ruslena Ramli, Head of Islamic Finance, RAM Ratings
    12.30pm Lunch
    2.00 pm
     
    Securitization
    • Discussions on identified case studies
     
    Contemporary Development of Sukuk
    • From plain vanilla to exotic structures
    • Wakalah and perpetual
    • Why are asset-backed not popular? 
    • Use of trust as alternative to SPV
      What are trust?  What act regulate them?  Where does the CMSA specify the use of trusts?
      Function of trusts.
    • PTCs
    • Errors in schematic process diagrams
     
    Speaker: Wan Abdul Rahim Kamil, Consultant, Securities Commission Malaysia
    3.30 pm Refreshments
    3.45 pm
     
    New Financing Objectives
    • SRI
    • Green sukuk
     
    Dispute Cases & Resolutions
    • Al Nakheel
    • Dana Gas
    • Sukūk restructuring
    •  PLUS Capital
     
    Speaker: Wan Abdul Rahim Kamil, Consultant, Securities Commission Malaysia
    5.00 pm End of Programme
  • Programme Fees

    Items Standard Early Bird (Before 6 July 2018)
    ICM Programmes Combo - 6 Programmes* RM650/ Programme RM550/ Programme
    Custom Combo -3 or more Programmes (Any programmes under ICM Series)* RM700/Programme RM600/ Programme
    1 Programme* RM750/Programme RM650/ Programme
    *Upon registration, please email to registration@sidc.com.my to entitle for the combo price
  • Speakers

    Speaker- Wan Abdul Rahim
    Wan Abdul Rahim Kamil currently serves as an Islamic Capital Market consultant with the Securities Commission (Malaysia's Capital Market regulatory authority). Being in that position, he advise and help formulate and develop the regulatory as well as market framework for the Islamic capital market industry in Malaysia. He was also involved in similar tasks with respect to the Islamic banking works during his days with Bank Islam Malaysia Berhad.
     
    During his tenure as Managing Director / CEO of Abrar Discounts Berhad from 1994 to 2006, he successfully converted and repositioned the then-fledgling Jati Discounts Berhad into a fully-dedicated Islamic Discount House and into an active Capital Market industry player that had innovated several capital market products and treasury mechanisms into the industry.
     
    As one of the pioneer staff of Bank Islam from 1983 to 2003, he was entrusted to handle Corporate Advisory, Investment Banking and Project Development activities. Throughout his three decades involvement in Islamic finance, he is personally credited with several of the Islamic finance innovations introduced in the market such as Rahnu (for Islamic 'pawnshops'), Murabahah Notes Issuance Facility (MuNIF) commercial papers, Islamic bonds (Sukuk) issued under the contracts of Musharakah, Qardhul Hasan and Bai' Bithaman Ajil (BAIDS) and the first Islamic Asset-Backed Securities (ABS).
     
    Much-sought after expert on Islamic finance, he actively contributes in his capacity as member of International Islamic Financial Market (IIFM)'s Market & Product Development Committee, NationalEconomic Action Committee (NEAC)'s Islamic Banking Committee, Securities Commission's Islamic Capital Market Working Group and Labuan LOFSA's Task Force on Islamic Finance. Elsewhere, Wan Rahim has been a consultant for Egypt Financial Services and the United States Agency for International Development (or USAID) in the development of the sukuk and bond markets. He is a regular contributor to the Islamic Banker, an internationally-distributed monthly publication on Islamic finance.
     
    He holds a Professional Membership from the Institute of Statisticians (now merged with Royal Statistical Society) of United Kingdom. He also holds a post-graduate degree from the International Institute of Islamic Banking and Economics, Republic of Northern Cyprus. Wan Rahim is currently an Academic Fellow at Kolej Universiti Insaniah, Kedah Darul Aman, Malaysia. Having had exposures from mid 1970's at Aseambankers (M) Berhad, Bank Islam Malaysia Berhad, Abrar Discounts Berhad and now Securities Commission, Wan Rahim is regarded as a specialist in Islamic Capital Market and Liquidity Management.

    Wan Rahim is a director and principal consultant at the First International Consulting Sdn Bhd, Malaysia, a firm that specialises in Islamic finance consulting, training and advisory.
     
    Speaker- Ruslena Ramli
    Ruslena Ramli is the Head of Islamic Finance at RAM Ratings. She plays a key role in further strengthening RAM’s franchise in Islamic finance, combining our fortes and insights in credit rating and sukuk transactions.
     
    Ruslena began her stint as a credit analyst with RAM’s infrastructure and utilities rating team in 1999, before broadening her horizon in the Islamic banking sphere in 2004. Her vast experience now encompasses investment, commercial and retail banking, having structured and advised on sukuk/bond issues, syndicated facilities and bridging transactions, including securing Bank Negara Malaysia’s approval for the establishment of Islamic banking products.
     
    She also brings to RAM her expertise in Shariah-compliant structures, acquired through her previous role as an Islamic banker seeking the Shariah Advisory Committee’s approval for Islamic financing structures as well as the principal terms and conditions of sukuk issuance and Islamic facilities.
    Ruslena holds a BA (Honors) in Accounting and Finance from Middlesex University of London.
     
    Speaker- Zairulnizad Shahrim
    Zairulnizad Shahrim, the Director of Islamic Markets at AmInvestment Bank Berhad has over 12 years of experience in the Islamic capital market and financial services industry. He specializes in Islamic capital market activities and his expertise includes all areas of Islamic finance from origination to structuring, covering both Islamic debt, equity instruments and funds management.
     
    He gained most of his experiences in Islamic finance and Islamic capital market during his time at the Securities Commission (SC) and Hong Leong Islamic Bank Berhad (HLIB). He has been involved in extensive number of Islamic syndications and capital markets transactions which includes Sukuk (Islamic securities), private equity, funds, derivatives and structured products. Some of the recent key deals include RM2.0 bil Commodity Murabahah Sukuk programme for Bank Pembangunan Malaysia Berhad, RM 2.465 bil Syndicated facility for Pembinaan BLT Sdn Bhd, RM4.9 bil for Boustead Naval Shipyard Sdn Bhd, RM1.35 bil for Jambatan Kedua Sdn Bhd and Islamic private equity fund for Jcorp Berhad. He also responsible for the non-ringgit Islamic cross-border and international Islamic finance initiatives under the International Currency Business Unit (ICBU) for the Bank.
     
    He is also a regular presenter and participates from time to time in various industry initiatives in relation to Islamic capital market and Islamic finance industry organised by Securities Commission, Bank Negara Malaysia and also various related industry associations. Zairulnizad graduated from University of Nottingham, United Kingdom with a Masters in Finance and Investment. He is also a British Council Chevening Scholar and also a recipient of the Securities Commission (SC) Scholarship Award.