COURSE DESCRIPTION

TARGET AUDIENCE

Portfolio managers, managers, sell-side and buy-side analysts, wealth management advisors, auditors, risk controllers, sharia-board members and compliance managers.

TRAINER'S PROFILE

Financial analyst within a major rating agency with proven expertise in islamic finance.

COURSE PROGRAM

DAY ONE

Morning : Islamic finance main instruments roundup

- Islamic finance principles : bans on riba, gharar, and maysir
- Financing operations related to the assets : murabaha, ijara, istisna'a
- Mudaraba-type contracts and islamic trust mechanics
- Advance purchase transactions (bai salam, bai muajjal) and options (arbun)

Applications : reviewed contract types will be illustrated by concrete examples

Afternoon : Structuration of a sharia-compatible sukuk

- Creation of a sharia-compatible ad-hoc vehicle(SPV) : mudaraba, musharaka
- Leveraging of the cash flows with underlying assets(in accordance with the AAOIFI framework)
- Optimization of the risk-yied ratio : the cases of sukuk equity and mezzanine
- Validation by a sharia board and implementation of a sharia compliance function

Applications : analysis de several sukuk (ijara, istisna, etc.) available on the market

DAY TWO

Morning : Risk management, valuation and performance benchmarking

- Sukuk rating and valuation methodology using historical cost or fair value
- Collateral Management : amortisment, depreciation, revaluation
- Liquidity management : sponsor guarantees and commitment
- IFSB and AAOIFI recommendations regarding risk management

Applications : valuation and rating of an Istisna sukuk

Afternoon : legal, regulatory, and tax aspects

- Rights and duties of final investors, issuers and sponsors
- Tax levies on capital gains and cash flows
- Presentation of the most recent tax and regulatory evolutions in France and Europe

Applications : legal and tax frameworks governing sukuks under French law and under English law