Islamic Capital Market

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ICM Series: The sukuk market

Dates:  12 & 13 October 2019 (8.30am - 5.00pm) 
Venue: Securities Commission Malaysia
Accreditation: SIDC CPE Eligible


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 
    ICM Programmes Combo - 6 Programmes* RM650/ Programme RM550/ Programme
    Sukuk Programmes Combo - 5 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