Islamic Banking in Practice - Volume 2
Volume 2 of the “Islamic Banking in Practice” series covers the broad and subtle subject of Sukuk.
Sukuks (sometimes referred to as Islamic versions of bonds) are one of the most visible products in Islamic banking, and their global reach has ensured a rapid growth in issuance.
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.
Safdar Alam is the former Global Head of Islamic Structuring at JP Morgan, and also established the Islamic banking businesses at UBS and Credit Agricole.