Professional Documents
Culture Documents
BOND
FINANCING
EUROBONDS AND SUKUK
BONDS
Eurocurrency market
Eurocurrency
Eurobanks
Eurobonds (Global bonds)
A Euro bond underwritten by an
international syndicate of banks and
other financial institutions and placed
in the countries other than the
country in whose currency the issue
is denominated.
Benefits
choose country
small par value
high liquidity
Eurobonds (Global bonds)
Interest
Maturity
Unsecured
Euro bonds VS Foreign bonds
A foreign bond is underwritten by a
syndicate consisting of members from a
single country, sold primarily within that
country and denominated in its
currency.
Eurobond Market composition
Market Components
Issuer • Syndicate
• Primary market
(lead manager)
Underwriter
Managing
group Selling group
ISLAMIC BOND
MARKET
ISLAMIC BOND MARKET
Categories of Islamic Bonds
Ijarah bonds
istisna‘ bonds
mudarabah or muqaradah bonds
musharakah bonds
salam bonds and
murabahah bonds
ISLAMIC BOND MARKET
IjARAH
Securitization
Bond Issuance
Trading of debt certificates
ISLAMIC BOND MARKET
SECURITIZATION
Role of al-mal or property
Haqq mali- investor’s right to sell the bond
The accounting and auditing organization for
Islamic Financial Institutions – standard for
Investment Sukuk
BOND ISSUANCE
Issue of Debt certificates
Issuing company or special purpose vehicle
(SPV)
Islamic coupon bonds and islamic zero
ISLAMIC BOND MARKET
Role of riba (interest)