VIRTUAL TRAINING SHARIAH AND LEGAL FRAMEWORK ON SUKUK
Transcript of VIRTUAL TRAINING SHARIAH AND LEGAL FRAMEWORK ON SUKUK
VIRTUAL TRAININGSHARIAH AND LEGAL
FRAMEWORK ON SUKUK
2 0 - 2 3 S E P T E M B E R 2 0 2 1
This brochure was prepared under the Training on Shariah and Legal Framework on Sukuk and Workshop on Responsible and Sustainable Financing Through Issuance of Sukuk (2019-BRNFINAN-732) project funded by the COMCEC
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;
• Assess the pricing of Sukuk; and
• Formulate legal documentation for Sukuk.
PROGRAMME OUTCOMES
PROGRAMME OVERVIEW
The training aims to educate potential Sukuk issuers and other relevant stakeholders on the fundamentals of
Sukuk, Shariah and legal framework of Sukuk. It also provides a comprehensive and practical knowledge on
Shariah and Legal Framework on Sukuk.
The programme will be covering in detail all major aspects of Shariah and legal issues in Sukuk. The trainers
are widely recognized in their respective areas.
TECHNICAL ARRANGEMENTS
The training sessions will be conducted via WebEx Platform.
More details will be shared in due course.
TIME
1:30 pm - 2:00 pm Participants log-in into WebEx Platform
2:00 pm - 2:15 pm Opening Remarks
2:15 pm - 3:30 pm Decision on Fund Raising
This session will explore different types of fund-raising mechanism and the benefits
and issues surrounding fund raising via equity and fund raising via debt.
Sukuk as an Islamic Financial Instrument
This session will cover the definition and structure of Sukuk, the difference between
asset based and asset backed, the difference between Sukuk and bond and analyses
on various Sukuk structures (Sukuk Ijarah, Mudharabah, Musyarakah, Wakalah,
Investment Sukuk, etc).
3:30 pm - 3:45 pm Break
3:45 pm - 5:00 pm Shariah and Legal Documentation on Sukuk
This session will include definition and explore the legal foundation of issuance
(Common Law vs. Civil Law), legal vehicle, legal structure and the legal treatment for
Sukuk structure (common vs. civil law). This session will also include investors rights
and issues in default and one case discussion.
END OF DAY 1
DAY 01: MONDAY, 20 SEPTEMBER 2021
TIME DAY 02: TUESDAY, 21 SEPTEMBER 2021
1:30 pm - 2:00 pm Participants log-in into WebEx Platform
2:00 pm – 3:30 pm Legal Documentation in Sukuk Structure
This session will examine and formulate various types of legal documentation in
various Sukuk structures (Sukuk Ijarah, Mudharabah, Musyarakah, Wakalah,
Investment Sukuk, etc). This session will also include one case discussion.
3:30 pm - 3:45 pm Break
3:45 pm – 5:00 pm Sukuk Pricing and Guarantee
This topic will include the different types of guarantee and Sukuk pricing and
Shariah rulings on Sukuk pricing and guarantee. It will also discuss capital guarantee
on various Sukuk structure and a case study exercise for the participants to assess
the pricing of Sukuk.
Sukuk Credit Rating
This topic will discuss and explore credit rating and credit rating scales as well as
define Sukuk rating and the credit rating processes. There will also be an exploration
of the rating perspective of asset backed vs. asset based transactions. This session
will also include one case discussion.
END OF DAY 2
PROGRAMME
TIME DAY 03: WEDNESDAY, 22 SEPTEMBER 2021
1:30 pm - 2:00 pm Participants log-in into WebEx Platform
2:00 pm - 3:30 pm Market Infrastructure needed for Sukuk
This topic will explore the ASEAN experience in developing market infrastructure
and environment needed for Sukuk including but not limited to lead arranger,
principal dealer, principal advisor, trustee, credit rating agency, bond pricing agency,
legal counsel and financial guarantee institution.
3:30 pm - 3:45 pm Break
3:45 pm - 5:00 pm Process to Issue Sukuk
This topic will learn the various processes to issue Sukuk including via private or
public offering and domestic or cross border offering in Brunei, Malaysia and
Indonesia. This topic will also include insight on listing and trading of Sukuk in a
securities exchange and some case studies.
Sukuk Trading
This topic will include operational matters in trading Sukuk through a primary or
secondary market. This topic will also look at the Shariah issues and legal issues of
Sukuk trading. This session will also include case discussion.
END OF DAY 3
TIME DAY 04: THURSDAY, 23 SEPTEMBER 2021
1:30 pm - 2:00 pm Participants log-in into WebEx Platform
2:00 pm - 3:30 pm Pricing and Financial Reporting for Sukuk
This topic will cover accounting basics such as Time Value of Money, simple and
compounding profit, compounding vs. discounting, compounding effect, annual
effective rate and annuity. This topic will also explore the financial reporting in
specific for Sukuk including characteristic of financial reporting for Sukuk, pricing of
Sukuk, measuring yield of Sukuk, measuring discount rates and determining the risk
premium of Sukuk. This session will also include discussion on AAOIFI and IFRS
reporting standards. This session will also include one case discussion.
3:30 pm - 3:45 pm Break
Sukuk: Defaulting and its restructuring; and Role of Dispute Resolution
This topic will explore the essentials of Sukuk structuring principles and the
underlying risks in Sukuk as well as methods to reduce risks. Speakers will share a
case study of Sukuk defaults and share different options of restructuring.
3:45 pm - 4:00 pm
TIME DAY 04: THURSDAY, 23 SEPTEMBER 2021
4:00 pm – 5:00 pm Panel Discussion
Panelist 1: Exploring the current trends in Sukuk and share their experience in
issuing such Sukuk.
Panelist 2: To discuss on Sukuk as a tool for liquidity management: case study from
Brunei Darussalam on Brunei Government Sukuk.
Panelist 3: This panel will provide a brief summary of the whole Sukuk topics which
have been covered and provide a brief summary on why Sukuk is a better
instrument for fund raising for small or large companies. This panel will also include
micro Sukuk and blockchain Sukuk.
Panelists:
• Dr Aznan Hassan, Associate Professor in Shariah at Institute of Islamic Banking
and Finance (IIiBF)
• Dr. Mohd Aidil Yusrie bin Shari, Deputy Head of Financing Office, Ministry of
Finance and Economy (MOFE)
• Dr Eskandar Shah, Associate Professor in International Center for Education in
Islamic Finance (INCEIF)
Moderator: To be confirmed
END OF DAY 4
4:00 pm - 5:00 pm
Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid is currently anAssociate Dean of School of Graduate and Professional Studies at theInternational Centre for Education in Islamic Finance (INCEIF), a postgraduate university specializing in Islamic Finance, established by BankNegara Malaysia. He holds a PhD in Finance from University ofNottingham, United Kingdom. He also holds a Master in InternationalEconomics and Finance from University of Queensland, Australia and aBachelor in Business Administration (Finance) from Islamic UniversityMalaysia (IIUM).
Prior to joining INCEIF, Dr Eskandar was an Assistant Professor atDepartment of Finance, Kulliyah of Economics and ManagementSciences, IIUM. During his doctoral studies, he worked as a Tutor atUniversity of Nottingham and Lecturer at Nottingham TrentInternational College, United Kingdom. Prior to the currentadministration position, he was the Dean of School of Graduate Studies(SGS), Deputy Director of BNP Paribas Centre of Islamic Asset andWealth Management (CIAWM) and Treasurer of Malaysian FinanceAssociation (MFA).
Dr Eskandar is also a Financial Sector Specialist Consultant for WorldBank and Advisor for Brunei Institute of Leadership & Islamic Finance(BILIF). He is also an Associate Editor for Turkish Journal of IslamicEconomics (TUJISE), International Journal of Islamic and Middle EasternFinance (IJIMEF) and Asian Academy of Management Journal ofAccounting and Finance (AAMJAF), and a member of ScientificCommittee, International Finance and Banking Society (IFABS).
Dr. Aznan Hasan is currently a lecturer at the Islamic Law Department,
Ahmad Ibrahim Kulliyyah of Laws, International Islamic University
Malaysia (IIUM). He received his first degree in Shariah from University of
Al Azhar, Egypt. He then successfully completed his Master’s degree in
Shariah from Cairo University with distinction and the board of
examination has recommended that his thesis be published. He then
obtained his PhD in Islamic Law from the University of Wales in United
Kingdom. He also serves as a member of Shariah committee to one of
the leading financial institutions in Malaysia. He taught several subjects
such as Islamic legal theory and Islamic law of transactions. Currently he
is a member Shariah Advisory Council (SAC) of Bank Negara Malaysia
and Securities Commission Malaysia. He also an Independent Shariah
advisor for Islamic securities issuance, approved by and registered with
the Malaysian Securities Commission.
Dr. Aznan Hassan
Associate Professor
Institute of Islamic Banking and
Finance (IIiBF)
Associate Professor Dr Mohammed
Eskandar Shah Mohd Rasid
Associate Dean, School of Graduate
and Professional Studies, INCEIF
SPEAKERS PROFILE
Dr. Mohd Aidil Yusrie bin Shari is a Deputy Head of Financing Office,
Ministry of Finance and Economy, Brunei Darussalam. Earlier, he was
an Assistant Professor (Islamic Finance) at Sultan Sharif Ali Islamic
University (UNISSA) and before that was an Islamic Finance
Specialist at Islamic Development Bank Group (IsDB). Previously he
was the Manager (Capital Market Supervision) of Regulatory
Department, Autoriti Monetari Brunei Darussalam (AMBD) and at
the same time attached to the Islamic Capital Market Business
Group of the Securities Commission Malaysia (SC) under the
‘regulatory attachment’ programme. Prior to AMBD, he was the
Deputy Manager of Shariah Department, Bank Islam Brunei
Darussalam (BIBD).
He holds a PhD and MA of Shariah from UNISSA and a BA of Shariah
from Universiti Brunei Darussalam (UBD). He was awarded the
Investment Foundations Certificate by CFA Institute.
Dr. Mohd Aidil Yusrie bin Shari
Deputy Head of Financing Office,
Ministry of Finance and Economy
(MOFE)
SPEAKERS PROFILE
VIRTUAL WORKSHOPRESPONSIBLE AND SUSTAINABLE FINANCING THROUGH ISSUANCE
OF SUKUK
2 7 - 2 8 S E P T E M B E R 2 0 2 1
This brochure was prepared under the Training on Shariah and Legal Framework on Sukuk and Workshop on Responsible and Sustainable Financing Through Issuance of Sukuk (2019-BRNFINAN-732) project funded by the COMCEC
By the end of this workshop, participants will be able to:
• Identify investor demand for green Sukuk;
• Examine trading analysis post distribution;
• Assess the pricing of green Sukuk;
• Design a green Sukuk framework;
• Evaluate various underlying structures of green Sukuk;
• Assess the compliance of green Sukuk; and
• Formulate legal documentation for green Sukuk.
PROGRAMME OUTCOMES
PROGRAMME OVERVIEW
The workshop aims to facilitate discussions and hands-on practices on responsible and sustainable
financing through issuance of Sukuk. These capacity building programmes will be delivered by
renowned and expert speakers in their respective fields of Islamic finance.
TECHNICAL ARRANGEMENTS
The workshop sessions will be conducted via WebEx Platform.
More details will be shared in due course.
TIME MONDAY, 27 SEPTEMBER 2021
1:30 pm - 2:00 pm
2:00 pm - 2:15 pm
ESG Sukuk Essentials
This session will explore the definition and characteristics of ESG Sukuk. It will also
discuss the global market size (developed vs. developing market) and investor demand
of the ESG Sukuk. Further, the session will also discuss the advantages and issues of
issuing Green, Social and Sustainable Sukuk. This session will also be covering micro
Sukuk initiatives.
Shariah Views on Environmental, Social and Governance (ESG)
This session will cover Shariah views and issues surrounding the Environmental, Social
and Governance.
2:15 pm - 3:45 pm
3:45 pm - 5:00 pm Structuring of ESG Sukuk
This session will explore the different types of Green, Social and Sustainable Sukuk as
well as its underlying structures. This session will also include the key Shariah
consideration when structuring ESG Sukuk.
Issuing ESG Sukuk
This session will include the process of issuing an ESG Sukuk, setting up, designing
and evaluating an ESG Sukuk framework and mapping the Sustainable Development
Goals for ESG Sukuk.
END OF DAY 1
Participants log-in into WebEx Platform
Opening Remarks
3:45 pm - 4:00 pm Break
PROGRAMME
TIME TUESDAY, 28 SEPTEMBER 2021
1:30 pm - 2:00 pm
2:00 pm - 2:15 pm Pricing & Trading Analysis of ESG Sukuk
This session will examine the process to determine the pricing and trading analysis
post distribution of ESG Sukuk including value proposition for investor.
Regulatory, Legal Documentation & Compliance of ESG Sukuk
This session will also explore the legal documentations and disclosure requirements
needed for ESG Sukuk and process to assess compliance to ESG Sukuk.
Role of External Independent Reviewer/Expert
This session will explain the needs and role of external independent reviewer.
2:15 pm - 3:45 pm
Break
3:45 pm - 5:00 pm
Participants log-in into WebEx Platform
3:45 pm - 4:00 pm Break
Breakout Session: Case Study and Mock Sukuk Structuring
This session will include a case study analysis on Khazanah SRI Sukuk, Indonesia
Sovereign Green Sukuk, Sukuk Waqf in Indonesia. Participants are expected to
discuss and present in particular the structure, pricing and trading analysis of the
case studies given.
Closing Panel DiscussionThis session will have 3 panel speakers.
Panelist 1: This panel will explain the adoption of ASEAN Green/Social/SustainableBond Standards and regional Green/SRI Sukuk Framework: its definition andobjectives of the issued standards. This panel will also be sharing their views inissuing an ESG Government Sukuk.
Panelist 2: To discuss and share experience on issuing an ESG Sukuk.
Panelist 3: This panel will discuss from ESG Investor Perspective.
Panelists:• Ahmad Hafiz Abdul Aziz, Financial Sector Specialist, World Bank Group Global
Knowledge and Research Hub;• Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid, Associate Dean of School of
Graduate and Professional Studies, International Centre for Education in IslamicFinance (INCEIF); and
• Edwin Shahyuzad, President Director, PT Sarana Multi Infrastruktur (Persero).
Moderator:• Dr. Mohammad Mahbubi Ali, Head of Economics, Finance, Awqaf and Zakat Cum
Associate Islamic Studies (IAIS Malaysia)
Closing Presentation
This session will provide a brief summary of the whole topic which have been
covered and provide a brief summary on why the current trend is towards ESG
Sukuk. Speaker will share the connection between the ESG Sukuk to the SDG goals
and Maqasid Shariah.
5:00 pm - 5:30 pm
END OF DAY 2
Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid is currently an
Associate Dean of School of Graduate and Professional Studies at the
International Centre for Education in Islamic Finance (INCEIF), a post
graduate university specializing in Islamic Finance, established by Bank
Negara Malaysia. He holds a PhD in Finance from University of
Nottingham, United Kingdom. He also holds a Master in International
Economics and Finance from University of Queensland, Australia and a
Bachelor in Business Administration (Finance) from Islamic University
Malaysia (IIUM).
Prior to joining INCEIF, Dr Eskandar was an Assistant Professor at
Department of Finance, Kulliyah of Economics and Management
Sciences, IIUM. During his doctoral studies, he worked as a Tutor at
University of Nottingham and Lecturer at Nottingham Trent
International College, United Kingdom. Prior to the current
administration position, he was the Dean of School of Graduate Studies
(SGS), Deputy Director of BNP Paribas Centre of Islamic Asset and
Wealth Management (CIAWM) and Treasurer of Malaysian Finance
Association (MFA).
Dr Eskandar is also a Financial Sector Specialist Consultant for World
Bank and Advisor for Brunei Institute of Leadership & Islamic Finance
(BILIF). He is also an Associate Editor for Turkish Journal of Islamic
Economics (TUJISE), International Journal of Islamic and Middle Eastern
Finance (IJIMEF) and Asian Academy of Management Journal of
Accounting and Finance (AAMJAF), and a member of Scientific
Committee, International Finance and Banking Society (IFABS).
Associate Professor Dr Mohammed
Eskandar Shah Mohd Rasid
Associate Dean, School of Graduate
and Professional Studies, INCEIF
SPEAKERS PROFILE
SPEAKERS PROFILE
Dr. Mohammad Mahbubi Ali is head of economics, finance, awqaf and zakat
unit cum Associate Fellow at the International Institute of Advanced Islamic
Studies (IAIS) Malaysia. He also serves as a Shariah committee member of
Affin Islamic Bank. Previously, he was a researcher at the International
Shari’ah Research Academy for Islamic Finance (ISRA). During his stint at
ISRA, he had contributed to numerous ISRA’s research publications, mainly
involving in the drafting of BNM Shari’ah Standards. He also served as
Shariah consultant for ZICO Shariah Advisory Bhd and Roosdiono &
Partners, Jakarta. He was a lecturer at the University of Kuala Lumpur and
Unitar International University.
In his young age, he has managed to contribute extensively to Islamic
finance through his regular writings featured in the Islamic Finance News
(IFN), Business Islamica, The General Council for Islamic Banks and Financial
Institutions (CIBAFI), New Straits Times and many others. He has published
numerous articles in international and local referred academic journals,
written several book chapters and presented a number of papers in various
international conferences. His paper entitled: “A Framework of Income
Purification for Islamic Financial Institutions,” co-authored with Dato’ Dr.
Asyraf Wajdi Dusuki and Lokmanulhakim Hussain, was conferred best paper
presentation in Sharia Economics Conference, University of Hannover,
Germany, 2013. He received a PhD in Islamic Banking and Finance from the
IIUM Institute of Islamic Banking and Finance, Malaysia. He holds a bachelor
degree in Shari’ah Business and Financial Management from the Islamic
Business School, Tazkia Indonesia and Chartered Islamic Finance
Professional (CIFP) from INCEIF, The Global University in Islamic Finance,
Malaysia.
Ahmad Hafiz Abdul Aziz is a Financial Sector Specialist with the World
Bank Group Inclusive Growth & Sustainable Finance Hub in Malaysia. Mr.
Abdul Aziz brings with him fifteen years of relevant experiences in
financial sector development, particularly in the area of Islamic capital
markets, Islamic social finance, green and sustainable finance and
financial inclusion. He has worked as a Principal Assistant Director at the
Ministry of International Trade and Industry, and as Manager of the
Islamic Capital Market at the Securities Commission Malaysia. He holds a
Master’s degree in Islamic Banking and Finance from Bangor University,
United Kingdom which he completed under the Chevening scholarship,
and a Master of Arts in Islamic Revealed Knowledge and Heritage (Fiqh
and Usul Fiqh) (Honors) from the International Islamic University
Malaysia.Ahmad Hafiz Abdul Aziz
Financial Sector Specialist, World
Bank Group Global Knowledge and
Research Hub
Dr. Mohammad Mahbubi Ali
Head of Economics, Finance, Awqaf
and Zakat Cum Associate Islamic
Studies (IAIS Malaysia)
Indonesian Citizen, based in Indonesia. Edwin Syahruzad obtained Bachelor’s
Degree in Economics from University of Indonesia in 1993.Previously he served
as Financing and Investment Director of PT SMI (2014-2019) pursuant to the
Minister of Finance Decree No. 389/KMK.06/2014 and Executive Vice
President/Head of Financing & Investment Division (2009-2014). Before joining
PT SMI, he served for 9 years at PT Danareksa (Persero) and culminating in the
position of Director at PT Danareksa Sekuritas. In addition, he worked as an
Analyst at PT Penthasena Securities (1996-1999), PT Amstel Securities
Indonesia (1995-1996), The Industrial Bank of Japan, Jakarta Branch (1993-
1995) and as Audit Committee Member at PT Timah, Tbk. (Persero) (2011-
2012).
He was appointed as President Director of PT SMI since 13 August 2019
pursuant to the Minister of Finance Decree No. 651/KMK.06/2019. As President
Director, he is in charge of overseeing the overall operation of the company,
including the development of the company’s long term strategy, and ensuring
strict compliance to good corporate governance practices in all of the
company’s operations.
Edwin Syahruzad
President Director PT Sarana Multi
Infrastruktur (Persero)
SPEAKERS PROFILE
The Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) wasestablished at the Third Islamic Summit Conference held in Mecca/Taif in 1981. COMCEC became operational at the Fourth IslamicSummit in 1984, with the election of the President of the Republic of Turkey to its chairmanship. The mandate of the COMCEC is todraw up programmes for joint action, co-ordinate and follow-up the activities pertaining to economic co-operation within theframework of the Organization of the Islamic Cooperation (OIC).
The COMCEC Project Funding (CPF) is a financing mechanism introduced by the COMCEC Coordination Office (CCO) in 2013. Itfinances projects submitted by OIC Member Countries and the relevant OIC institution to realise the strategic objectives and outcomesof the COMCEC Strategy.
For more information, please visit www.comcec.org
The Ministry of Finance and Economy is an agency of the Government of Brunei Darussalam which is responsible for matters relating todomestic an external economic and finance policy. Its vision is to ensure Brunei Darussalam's status as a dynamic, prosperous andprogressive nation and its mission is to deliver economic and financial sustainability. Key functions and roles, among others, focus onensuring the country's financial stability as well as providing policies and guidelines towards enhancing Brunei Darussalam's economicgrowth and development.
For more information, please visit www.mofe.gov.bn
Established in 2010, Brunei Institute of Leadership & Islamic Finance (BILIF), formerly known as Centre For Islamic Banking, Finance AndManagement (CIBFM) is a training institution under the purview of Brunei Darussalam Central Bank (BDCB) that provides high-qualitylearning solutions and organises signature and collaborative events for human capacity development in the areas of Islamic Financeand leadership. Since its inception, BILIF has conducted over 500 programmes and 58 events for more than 13,000 participants,including a new suite of Virtual Instructor-Led Training (VILT) programmes and online events (figures as of June 2021).
For more information, please visit www.bilif.com.bn
For more information on the COMCEC Virtual Training & Workshop, please contact the following persons at
Mohammad Hanizam bin Alidin+673 827 [email protected]
Nurhazerah binti Haji Abd Halim+673 827 [email protected]
ABOUT THE MINSTRY OF FINANCE AND ECONOMY (MOFE)
CONTACT DETAILS
ABOUT COMCEC
ABOUT BRUNEI DARUSSALAM CENTRAL BANK (BDCB)Brunei Darussalam Central Bank (BDCB) conducts the country’s monetary policy, issues the Brunei currency, as well as regulates andsupervises banks and other financial institutions in Brunei Darussalam. Among BDCB’s objectives include to achieve and maintaindomestic price stability; ensure the stability of the financial system, in particular by formulating financial regulations and prudentialstandards; assist in the establishment and functioning of efficient payment systems and to oversee them; and foster and develop asound and progressive financial services sector.
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ABOUT BRUNEI INSTITUTE OF LEADERSHIP & ISLAMIC FINANCE (BILIF)
Brunei Institute of Leadership & Islamic Finance (BILIF)