Page 5 - ANJ Capital Market Presentation

SUKUK Structures

A sukuk is an Islamic financial certificate, similar to a bond in Western finance, that
complies with Islamic religious law commonly known as Shari’a. Since the traditional
Western interest-paying bond structure is not permissible, the issuer of a sukuk sells an
in vestor group a certificate, and then uses the proceeds to purchase an asset, of which

the investor group has partial ownership. The issuer must also make a contractual
promise to buy back the bond at a future date at par value.

Types of SUKUK

Ijarah
Leasing

Sale of
Asset
Mudharabah
Originator Sukuk Issuer Profit-sharing
Capital Payment

Lease & Rental
Payments Invest Funds
Originator (Lessee) Sukuk Holder

Issuer Capital
Provider
Musharakah
Returns of Profit Profit and Loss Sharing

Investors Contribute Cash
(or in Kind) to Finance a
Business Venture
Participates
in Decision- Business
Murabahah Investors Making Compliant)
(Shariah-
Cost-Plus Sale
Profit Shared Based on Pre-agreed
Ratios/Losses Shared Based on
Equity Participation
Sell Asset
Cost + Profit
Buy (Agreed Upon
Asset Upfront)
Al-Wakalah
Investing Through an Invesment Agent Investor Sukuk issuer

Instalment Payments
(Shariah-Compliant)
Return on
Investor Investments
Sukuk Capital

agreement
Issuer Agent (Wakeel)
landsterling.com