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11th & 12th May 2010 - PJ Hilton. Petaling Jaya
Islamic
Financing
Sukuk : Understanding the
Principles & Practical Approach
Sukuk refers to trust certificates or
participation securities that grant investors a
share of the asset, including the cash flow and
risks that commensurate from such ownership.
Similar to financial bonds in the conventional
financial industry, Sukuk are proof of
ownership title and are utilised by financial
institutions and corporates to raise cash.
Both conventional bonds and Sukuk are
structured in tandem with physical assets
that generate revenue. However, unlike a
bond, Sukuk can be designed from innovative
applications of Islamic financial contracts.
Leveraging on various Islamic principles, Sukuk
can be structured in several ways to offer the
issuing entity greater financial flexibility and
options to meet its funding requirements.
This workshop will provide a solid grounding
in Sukuk Origination and Structure. From basic
principles of Islamic financing the programme
will define the Islamic Capital Market, explain
the Sukuk issuance process and discuss the
basic and latest Sukuk structures including
examination of latest Sukuk rulings and
overview of the issues in Sukuk defaults.
Sukuk legal documents and the Securities
Commission’s guidelines on Sukuk Issuance
will also be discussed.
A special section on Islamic Accounting will
explore the latest issues and developments in
accounting for Islamic Products and Finance.
Objectives
At the end of the workshop participants shall understand:
• Sukuk and its latest development, locally and internationally,
• the Syariah concepts underlying Islamic Financing and Sukuk,
• the cost and process of issuing Sukuk,
• the Sukuk legal documents and its Syariah aspects,
• the Securities Commission’s guidelines on Sukuk and current
ownership issues in Sukuk defaults,
• Sukuk and Islamic Accounting and its current issues.
Methodology
Touch base on basics of underlying Syariah Concepts,
followed by basics of Sukuk leading to current state of play.
Case studies/group presentations and pop quizzes to test
participants’ grasp of concepts.
Who Should Attend
Accountants, Auditors, Bankers, Financial Controllers,
Finance Managers, Senior Managers, Managers, Credit
Officers, Academician and other interested individuals.
Facilitator
Muhamma d Zahid Abdul Aziz
Muhammad Zahid holds a Bachelor’s Degree in Economics
from University of Exeter, United Kingdom. After graduating
in 1977, he joined an International Accounting Firm, Arthur
Young & Co. London office. He returned to Malaysia in 1982
and joined Arab Malaysian Merchant Bank, Kuala Lumpur.
He joined Bank Islam Malaysia Berhad in 1990 where he
pioneered and helped develop Islamic Corporate Banking,
specialising in Islamic Syndications and Islamic Bond
Issuance. His last position at Bank Islam was Senior
Manager, Corporate Financing Department. Whilst at Bank
Islam Zahid worked as part of the team that transacted the
KLIA RM4.4 billion Malaysian Sukuk in 1996—a benchmark
issue. He had arranged over RM6.0 billion in Islamic Bond
Issues during his tenure there.
He left Bank Islam in September 2000 to form a firm
specialised in training and arranging of Islamic financing
and also an SC approved Syariah Adviser for Sukuk.
Between July 2006 and March 2009 Zahid was based in
Riyadh as Head of Investment Banking & Sukuk Origination
for Al Bilad Investment Company Ltd, a CMA licensed wholly
owned subsidiary of Saudi Arabia’s Bank Al Bilad. In April
2009 he returned to Malaysia to resume his position as a
financial consultant.
COURSE OUTLINE
Day one
Understanding Bo nd-Abled Is lam ic Financing
Facilities
• Islamic Syndications,
• Islamic Facilities and the Internal Rate of Return,
• Islamic Bond Issuance,
• Bai’ Bithaman Ajil (“BBA”)/ Istisna’ Bond Issuance,
• Sukuk Ijarah,
• Ijarah Musyarakah Structure,
• Ijarah Muntahiah Bit-Tamlik.
Understanding Principa l Features of Is lam ic
Bo nds and its La test Developm ents.
• Principal features of Baids,
• Principal features of ICP’s,
• Principal features of IMTN’s,
• Principal features of Musyarakah / Mudharabah Bonds,
• Project Gold—analysing the structure and features of
Malaysia’s first Islamic Sovereign Issue. USD600 million
Sukuk Ijarah / Trust Certificate Issuance on behalf of
Malaysia Global Sukuk Inc.
Issu ing an Is lam ic Bo nd/Sukuk
• Eligibility of projects for Islamic Bond Financing,
• Basic criteria for companies to be eligible to issue Islamic
Bonds,
• The rating process and significance of ratings,
• The issuance procedure / requirements,
• Advisors / Consultants,
• Detailed costs breakdowns,
• Pricing—Islamic Bonds vs Conventional Bonds,
• Period taken and timetable to financial close accounting
entries for Islamic Bond Issuance.
Is lam ic Cap ital Market Exercise / Cas e Study
• Computing Face Value of Secondary Notes,
• Design an Islamic Bond termsheet for a potential issuer,
• Design, arrange and issue the first Musyarakah Bond to be
issued and traded in the country.
Day Two
Principa l Features of International Sukuk and its
La test Developm ents
• Investment Dar Sukuk Musharaka,
• Sukuk Ijara,
• IDB Sukuk Istithmar,
• SABIC/SEC Saudi Sukuk,
• Paka Capital Exchangeable Sukuk,
• Bahrain Salam Sukuk ,
• AAOFFI Sukuk Rulings,
• OIC Fiqh Academy Rulings,
• Overview of Issues in International Sukuk Defaults—
Tamweel Sukuk and East Cameron Sukuk.
Understanding Bo nd Legal Do cum entation
• BAIDS—Salient Points,
Asset Purchase Agreement, Asset Sale Agreement, Notes
Issuance Facility Agreement, Agency Agreement,
• ICP’s/IMTN—Salient Points,
ICP’s/IMTN Facility Agreement Schedule to Agreement—
Issue Request, Invitation and Tender, Tender, Acceptance of
Tender, Resale, Tender Panel Agreement, Trust Deed.
Comp lying with Securities Comm iss ion’s Gu idelines
on Off erings of Is lam ic Securities.
• Concepts, structure, term sheet, legal documentation,
administrative and operational procedure and documents,
• Eligibility of transacted asset/project.
Is lam ic Accou nting
• Syariah issues in accounting Islamic financial transactions
– Issues of recognition, measurement and disclosure,
– Accounting for Wadiah Yad Dhamanah and Mudharabah
deposits,
– Questions of akad for Statutory Reserves and Liquid
Assets. Is marked to market Islamic?
– Accounting for murabahah, BBA, Ijarah. And Ijarah
Muntahia BilTamlik Accounting for SPVs and Sukuk
Musharaka. Can we agree on an Accounting Standard for
Ijarah?
– The purist versus the pragmatic approach to Islamic
Accounting Standards. Is AAOFFI ahead of its time?
– Quranic basis for Islamic Accounting. Can International
Standards satisfy Syariah demands?
– Audits must comply with Standards and Syariah,
– Concepts of Al-aslu ibahah and Uruf Tijari to support the pragmatic approach
Registration Form | MPDC programm e
PAYMENT BY CREDIT CARD
VISA MASTER (tick whichever applicable) CARD EXPIRY DATE:
Cardholder Name :
Card No.:
I authorise pa yment of RM:
Date : Signature :
ORGANISATION’s details
ORGANISATION:
INDUSTRY: CONTACT PERSON:
ADDRESS:
E-MAIL:
TEL: FAX:
signature & Compan y stamp
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PAYMENT BY cheque
Bank & Cheque No.: Amount (RM):
Ema il this online
brochure and print only
when necessa ry
Sukuk : Understanding the Principles
and Practical App roa ch
11 & 12 May 2010, Tuesday & Wednesday
Hilton Petaling Jaya
cou rse fee
Fee is payable to: MIA-MPDC .
Fee includes course materials, lunch and 2 tea breaks per day.
Admittance will only be permitted upon receipt of full
payment. Registration made by fax must be followed
immediately by payment.
CANCELL ATI ON / TR ANSFER
Upon registering, participant(s) are considered successfully
enrolled in the event. Should participant(s) decide to cancel/
transfer their enrollment; a cancellation/transfer fee will be
levied. Written cancellations/transfer notice received:
• One (1) week before the event, a refund (less an
administrative charge of 20%) will be made.
• For no-show on the day of the event, no refund will be
entertained.
You can substitute an alternate participant(s) if you wish to
avoid cancellation/transfer charges. Any difference in fee
charges will be charged accordingly.
Cancelled/transfered unpaid registrations will also be liable
for full payment of the registration fee.
spo nso red staff 1
Sponsoring member is required to indicate his/her name,
designation and membership number in the registration form.
The sponsored staff must report directly to him/her in his/
her firm or company, but for the latter, not in a subsidiary or
related company. In the absence of written information on
sponsoring, no refunds will be applicable after confirmation
of acceptance of registration. Terms and conditions apply.
CPE HOURS
All participants will be presented with a Certificate of
Attendance upon successful completion of the programme.
For MIA members, the CPE hours will be credited into the
Membership System within 2 weeks of the programme.
DI SCLAIMER
Malaysian Institute of Accountants (MIA) reserve the right to
change the speaker(s), date(s) and to cancel the programme
should circumstances beyond its control arises. MIA also
reserve the right to make alternative arrangements without
prior notice should it be necessary to do so.
Upon signing the registration form, you are deemed to have
read and accepted the terms and conditions.
Fee
Member | RM 1,100
Member Firm’s Staff or Sponsored Staff 1 | RM 1,200
Non-member | RM 1,300
registration / enquir y
Call : Shadia
Tel : 03.2279
9200 ext 137
Fax : 03.2273
5167
Email : mpdc@mia.org.my
Add : Malaysian
Institute of Accountants
Dewan Akauntan
No. 2, Jalan Tun Sambanthan 3
Brickfields, 50470 Kuala Lumpur
terms & conditions
Other Financial Management Programmes:
• Building Financial Models for Decision Making
• Effective Stock Take Techniques
• Financial Decision Making for Non-Finance Managers
• Fundamentals of Budgeting and Cash Flow Forecasting
• Protect Your Business from Prevailing Cheque Scams/Fraud
• Entrepreneurial Approach to Credit Management & Debt
Recovery
participants ’ details
1. FULL NAME AS PER I/C (Dato’ / Datin / Dr / Mr / Mrs / Ms): Vegetarian meal
DESIGNATION: MEMBERSHIP NO. 1
:
2. FULL NAME AS PER I/C (Dato’ / Datin / Dr / Mr / Mrs / Ms): Vegetarian meal
DESIGNATION: MEMBERSHIP NO. 1
:
3. FULL NAME AS PER I/C (Dato’ / Datin / Dr / Mr / Mrs / Ms): Vegetarian meal
DESIGNATION: MEMBERSHIP NO. 1
:
F I N A N C I A L M A N A G E M E N T P R O G R A M M E S
Day Two
Princi
Day one
Understanding Bo nd-Abled Is lam ic Financing
Facilities
• Islamic Syndications,
• Islamic Facilities and the Internal Rate of Return,
• Islamic Bond Issuance,
• Bai’ Bithaman Ajil (“BBA”)/ Istisna’ Bond Issuance,
• Sukuk Ijarah,
• Ijarah Musyarakah Structure,
• Ijarah Muntahiah Bit-Tamlik.
Understanding Principa l Features of Is lam ic
Bo nds and its La test Developm ents.
• Principal features of Baids,
• Principal features of ICP’s,
• Principal features of IMTN’s,
• Principal features of Musyarakah / Mudharabah Bonds,
• Project Gold—analysing the structure and features of
Malaysia’s first Islamic Sovereign Issue. USD600 million
Sukuk Ijarah / Trust Certificate Issuance on behalf of
Malaysia Global Sukuk Inc.
Issu ing an Is lam ic Bo nd/Sukuk
• Eligibility of projects for Islamic Bond Financing,
• Basic criteria for companies to be eligible to issue Islamic
Bonds,
• The rating process and significance of ratings,
• The issuance procedure / requirements,
• Advisors / Consultants,
• Detailed costs breakdowns,
• Pricing—Islamic Bonds vs Conventional Bonds,
• Period taken and timetable to financial close accounting
entries for Islamic Bond Issuance.
Is lam ic Cap ital Market Exercise / Cas e Study
• Computing Face Value of Secondary Notes,
• Design an Islamic Bond termsheet for a potential issuer,
• Design, arrange and issue the first Musyarakah Bond to be
issued and traded in the country.
Sukuk: Understanding the Principles
and Practical Approach
Understanding the Principles
and Practical Approach
Understanding the Principles
and Practical Approach
A N C I A L M A N A G E M E N T P R O G R A M M E S
Sukuk or Islamic bonds is the most popular component in Islamic Finance among
consumers. Gain a solid grounding in Sukuk Origination and
Understanding the Principles
and Practical Approach
---------------------------------------------------------------------------------------------------------------------
SUKUK : UNDERSTANDING THE PRINCIPLES
& PRACTICAL APPROACH
Sukuk or Islamic bonds is the most popular component in Islamic
Finance among Muslim and non-Muslim consumers alike.
Sukuk refers to trust certificates or participation securities that
grant investors a share of the asset including the cash flow and
risks that commensurate from such ownership. Similar to financial
bonds in the conventional financial industry, Sukuk are proof
of ownership title and are utilised by financial institutions and
corporates to raise cash.
Both conventional bonds and Sukuk are structured in tandem with
physical assets that generate revenue. However, unlike a bond,
Sukuk can be designed from innovative applications of Islamic
financial contracts.
Leveraging on various Islamic principles, Sukuk can be structured
in several ways to offer the issuing entity greater financial flexibility
and options to meet its funding requirements.
This workshop will provide a solid grounding in Sukuk Origination
and Structure. From basic principles of Islamic financing the
programme will define the Islamic Capital Market, explain the
Sukuk issuance process and discuss the basic and latest Sukuk
structures including examination of latest Sukuk rulings and
overview of the issues in Sukuk defaults. Sukuk legal documents
and SC guidelines on Sukuk Issuance will also be discussed. A
special section on Islamic Accounting will explore the latest issues
and developments in accounting for Islamic Products and Finance.
26 & 27 January 2010 (Tuesday & Wednesday) • Concorde Hotel Kuala Lumpur
At the end of the workshop the participant shall understand:
• Sukuk and its latest development local and internationally
• the Syariah concepts underlying Islamic Financing and Sukuk,
• the cost and process of issuing Sukuk,
• the Sukuk legal documents and its Syariah aspects
• the SC guidelines on Sukuk and current ownership issues in Sukuk defaults
• SUKUK and Islamic Accounting and its current issues
COURSE OUTLINE
Objecti ves
Touch base on basics of underlying Syariah Concepts, followed by basics of
Sukuk leading to current state of play. Case studies/ group presentations and
pop quizzes to test participants grasp of concepts.
METHODOLOGY
Accountants, Auditors, Bankers, Financial Controllers, Finance Managers,
Senior Managers, Managers, Credit Officers, Academician and other
interested individuals.
WHO SHOULD ATTEND
Based on
the merit
of each
applicant
Day one
Understanding Bond-Abled Islamic Financing Facilities
• Islamic Syndications
• Islamic Facilities and the Internal Rate of Return
• Islamic Bond Issuance
• Bai’ Bithaman Ajil (“BBA”)/ Istisna’ Bond Issuance
• Sukuk Ijarah
• Ijarah Musyarakah Structure
• Ijarah Muntahiah Bit-Tamlik
Understanding Principal Features of Islamic Bonds and its Latest
Developments.
• Principal features of Baids
• Principal features of ICP’s
• Principal features of IMTN’s
• Principal features of Musyarakah / Mudharabah Bonds
• Project Gold – Analysing the Structure and Features of Malaysia’s First Islamic
Sovereign Issue. USD600 million Sukuk Ijarah / Trust Certificate Issuance on
behalf of Malaysia Global Sukuk Inc.
Issuing an Islamic Bond/Sukuk
• Eligibility of projects for Islamic Bond Financing
• Basic Criteria for companies to be eligible to issue Islamic Bonds
• The Rating Process and Significance of Ratings
• The Issuance Procedure / Requirements
• Advisors / Consultants
• Detailed Costs Breakdowns
• Pricing – Islamic Bonds vs Conventional Bonds
• Period taken and timetable to financial close accounting entries for Islamic
Bond Issuance
Day Two
Principal Features of International Sukuk and its Latest Developments
• Investment Dar Sukuk Musharaka,
• Sukuk Ijara,
• IDB Sukuk Istithmar,
• SABIC/SEC Saudi Sukuk,
• Paka Capital Exchangeable Sukuk,
• Bahrain Salam Sukuk
• AAOFFI Sukuk Rulings
• OIC Fiqh Academy Rulings
• Overview of Issues in International Sukuk Defaults
– Tamweel Sukuk & East Cameron Sukuk
Understanding Bond Legal Documentation
• BAIDS – Salient Points
– Asset Purchase Agreement, Asset Sale Agreement, Notes Issuance Facility
Agreement, Agency Agreement.
• ICP’s / IMTN – Salient Points
– ICP’s / IMTN Facility Agreement Schedule to Agreement – Issue Request,
Invitation and Tender, Tender, Acceptance of Tender, Resale, Tender Panel
Agreement, Trust Deed.
Complying with Securities Commission’s Guidelines on Offerings of
Islamic Securities.
• Concepts, structure, term sheet, legal documentation, administrative and
operational procedure and documents.
• Eligibility of transacted asset / project
Islamic Accounting
• Syariah issues in accounting Islamic financial transactions
– Issues of recognition, measurement and disclosure.
– Accounting for Wadiah Yad Dhamanah and Mudharabah deposits
– Questions of akad for Statutory Reserves and Liquid Assets. Is marked to
market Islamic?
– Accounting for murabahah, BBA, Ijarah. And Ijarah Muntahia BilTamlik
Accounting for SPVs and Sukuk Musharaka. Can we agree on an Accounting
Standard for Ijarah?
– The purist versus the pragmatic approach to Islamic Accounting Standards.
Is AAOFFI ahead of its time?
– Quranic basis for Islamic Accounting. Can International Standards satisfy
Syariah demands?
– Audits must comply with Standards and Syariah
– Concepts of Al-aslu ibahah and Uruf Tijari to support pragmatic
approach
Islamic Capital Market Exercise / Case Study
• Computing Face Value of Secondary Notes
• Design an Islamic Bond Termsheet for a Potential Issuer.
• Design, arrange and issue the first Musyarakah Bond to be issued and
traded in the country
TIME
9.00am to 5.00pm
CLOSING DATE
One week before the programme.
CPE HOURS
You will be presented with a Certificate of Attendance
upon successful completion of the programme. As
for MIA members, CPE hours will be credited into the
Membership System within 2 weeks of the programme
date. To qualify for the CPE credit hours and Certificate
of Attendance, participants are required to attend the
event in full.
CANCELLATION
Upon registering, participant(s) are considered
successfully enrolled in the event. Should participant(s)
decide to cancel their enrollment; a cancellation fee will
be levied. Written cancellations received:
• One (1) week before the event, a refund (less an
administrative charge of 20%) will be made.
• For no-show on the day of the event, no refund will
be entertained.
You can substitute an alternate participant(s) if you
wish to avoid cancellation charges. Any difference in fee
charges will be charged accordingly.
Cancelled unpaid registrations will also be liable for full
payment of the registration fee.
DISCLAIMER
Malaysian Institute of Accountants (MIA) reserves the
right to change the facilitator, date and to cancel the
programme should circumstances beyond its control
arises. MIA also reserves the right to make alternative
arrangements without prior notice should it be necessary
to do so. Upon signing the registration form, you are
deemed to have read and accepted the terms and
conditions.
ORGANISATION:
INDUSTRY: CONTACT PERSON:
ADDRESS:
E-MAIL:
TEL: FAX:
total FEE : RM CHEQUE NO. :
SIGNATURE & COMPANY STAMP
1. FULL NAME AS PER I/C (Dato’
/ Datin / Dr / Mr / Mrs / Ms):
DESIGNATION:
MEMBERSHIP NO. 1 : VEGETARIAN MEAL q Yes
2. FULL NAME AS PER I/C (Dato’
/ Datin / Dr / Mr / Mrs / Ms):
DESIGNATION:
MEMBERSHIP NO. 1 : VEGETARIAN MEAL q Yes
3. FULL NAME AS PER I/C (Dato’
/ Datin / Dr / Mr / Mrs / Ms):
DESIGNATION:
MEMBERSHIP NO. 1 : VEGETARIAN MEAL q Yes
registration / enquiry
call : Rozline
Tel : 03.2279 9361
Fax : 03.2273 5167
Email : mpdc@mia.org.my
Add : Malaysian Institute
of Accountants
Dewan Akauntan
No. 2, Jalan Tun Sambanthan 3
Brickfields, 50470 Kuala Lumpur
COURSE FEE
Member | RM 1,100
Member Firm’s Staff
or Sponsored Staff 1 | RM 1,200
Non-member | RM 1,300
Fee is inclusive of course materials, 2 tea breaks and
lunch per day.
Fee is made payable to MIA-MPDC.
Admittance will only be permitted upon receipt of full
payment. Registration made by fax must be followed
immediately by payment.
1 Sponsoring member is required
to indicate his name,
designation and membership number in the registration
form. The sponsored staff must report directly to
him in his firm or company, but for the latter, not in a
subsidiary or related company. In the absence of written
information on sponsoring, no refunds will be applicable
after confirmation of acceptance of registration. Terms
and conditions apply.
PAYMENT BY CREDIT CARD q VISA q MASTER (tick
whichever applicable) Card Expiry
Date:
Card No.: | | | | | / |
| | | | / | | | | | / | | | | |
Cardholder Name :
I authorise payment of RM
Date : Signature :
online registration: REGISTRATION
FORM www.mia.org.my
facilitator ’s Profile
Muhammad Zahid Abdul Aziz holds
a Bachelor’s Degree in Economics
from University of Exeter, United Kingdom. After graduating in 1977, he joined an
International Accounting Firm, Arthur Young & Co. London office. He returned to
Malaysia in 1982 and joined Arab Malaysian Merchant Bank Kuala Lumpur. He joined
Bank Islam Malaysia Berhad in 1990 where he pioneered and helped develop Islamic
Corporate Banking specializing in Islamic Syndications and Islamic Bond Issuance.
His last post at Bank Islam was Senior Manager, Corporate Financing Dept, He has
26 & 27 January 2010 (Tuesday & Wednesday), Concorde Hotel Kuala Lumpur
arranged over RM6.0 billion in Islamic Bond Issues during his tenure at Bank Islam. He
left Bank Islam in September 2000 to form Muamalah Financial Consulting Sdn Bhd,
a firm specialised in training and arranging of Islamic financing and an SC approved
Syariah Adviser for Sukuk. He has just returned to Malaysia after two and a half years
based in Riyadh as Sukuk and Islamic Investment Banking Consultant to Bank AlBilad,
Saudi Arabia’s second Islamic Bank.
administrati ve detai ls
SUKUK : UNDERSTANDING THE PRINCIPLES & PRACTICAL APPROACH
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