Islamic Banking in Practice – Volume 2 -Sukuk

Description

Sukuk – Structuring, Pricing and Risk Management

• This is how Islamic Banking really works

​In a sector where publications focus on theory, the Islamic Banking in Practice series concentrates solely on market practice.​

The evolution of principles into practice is explained clearly and concisely.

This volume will explain how Sukuks work and why they were created. The reader will be guided in how to structure a Sukuk product from first principles. Most of the different major types of Sukuk in issuance will also be described in detail. This will be reinforced through the presentation and detailed analysis of market transactions.

At all stages, the focus will be on the aspects of Sukuk that relate to compliance with the rules of Islamic banking. Areas covered include the issuance process, pricing, asset injection, risk management, and Shariah compliance. Other relevant areas such as credit rating, defaults and the impact of introducing assets (including the controversial topic of a “true sale”) will be covered. The key development in the markets as a consequence of AAOIFI rule changes are analysed.

​Chapter headings include

• Common Sukuk structures
  • Ijara, Musharakah, Mudarabah, Wakala, Murabaha
  • Project finance
  • Perpetual
  • Equity linked / Exchangeable
  • Hybrid
• Shariah compliance
• AAOIFI developments
• Credit rating
• Defaults
• The issue of a “True Sale”

Sukuks, sometimes referred to as the Islamic version of bonds, are one the most visible products in islamic banking and finance, and with a global reach.​

This volume will explain why Sukuks were created, and how they work. The different structures of Sukuk will be explained, and reinforced through detailed analysis of market transactions.

​Areas covered include

• Issuance process
• Pricing
• Asset injection
• Risk management
• Shariah compliance