VIRTUAL TRAININGSHARIAH AND LEGAL

FRAMEWORK ON SUKUK

2 0 - 2 3 S E P T E M B E R 2 0 2 1

This brochure was prepared under the Training on Shariah and Legal Framework on Sukuk and Workshop on Responsible and Sustainable Financing Through Issuance of Sukuk (2019-BRNFINAN-732) project funded by the COMCEC

By the end of this programme, participants will be able to:

• Describe the distinctive characteristics of Sukuk;

• Explain the Shariah and regulatory framework applicable to Sukuk market;

• Examine the various types and structures of Sukuk and their underlying contracts;

• Analyse the different Sukuk Structures;

• Assess the pricing of Sukuk; and

• Formulate legal documentation for Sukuk.

PROGRAMME OUTCOMES

PROGRAMME OVERVIEW

The training aims to educate potential Sukuk issuers and other relevant stakeholders on the fundamentals of

Sukuk, Shariah and legal framework of Sukuk. It also provides a comprehensive and practical knowledge on

Shariah and Legal Framework on Sukuk.

The programme will be covering in detail all major aspects of Shariah and legal issues in Sukuk. The trainers

are widely recognized in their respective areas.

TECHNICAL ARRANGEMENTS

The training sessions will be conducted via WebEx Platform.

More details will be shared in due course.

TIME

1:30 pm - 2:00 pm Participants log-in into WebEx Platform

2:00 pm - 2:15 pm Opening Remarks

2:15 pm - 3:30 pm Decision on Fund Raising

This session will explore different types of fund-raising mechanism and the benefits

and issues surrounding fund raising via equity and fund raising via debt.

Sukuk as an Islamic Financial Instrument

This session will cover the definition and structure of Sukuk, the difference between

asset based and asset backed, the difference between Sukuk and bond and analyses

on various Sukuk structures (Sukuk Ijarah, Mudharabah, Musyarakah, Wakalah,

Investment Sukuk, etc).

3:30 pm - 3:45 pm Break

3:45 pm - 5:00 pm Shariah and Legal Documentation on Sukuk

This session will include definition and explore the legal foundation of issuance

(Common Law vs. Civil Law), legal vehicle, legal structure and the legal treatment for

Sukuk structure (common vs. civil law). This session will also include investors rights

and issues in default and one case discussion.

END OF DAY 1

DAY 01: MONDAY, 20 SEPTEMBER 2021

TIME DAY 02: TUESDAY, 21 SEPTEMBER 2021

1:30 pm - 2:00 pm Participants log-in into WebEx Platform

2:00 pm – 3:30 pm Legal Documentation in Sukuk Structure

This session will examine and formulate various types of legal documentation in

various Sukuk structures (Sukuk Ijarah, Mudharabah, Musyarakah, Wakalah,

Investment Sukuk, etc). This session will also include one case discussion.

3:30 pm - 3:45 pm Break

3:45 pm – 5:00 pm Sukuk Pricing and Guarantee

This topic will include the different types of guarantee and Sukuk pricing and

Shariah rulings on Sukuk pricing and guarantee. It will also discuss capital guarantee

on various Sukuk structure and a case study exercise for the participants to assess

the pricing of Sukuk.

Sukuk Credit Rating

This topic will discuss and explore credit rating and credit rating scales as well as

define Sukuk rating and the credit rating processes. There will also be an exploration

of the rating perspective of asset backed vs. asset based transactions. This session

will also include one case discussion.

END OF DAY 2

PROGRAMME

TIME DAY 03: WEDNESDAY, 22 SEPTEMBER 2021

1:30 pm - 2:00 pm Participants log-in into WebEx Platform

2:00 pm - 3:30 pm Market Infrastructure needed for Sukuk

This topic will explore the ASEAN experience in developing market infrastructure

and environment needed for Sukuk including but not limited to lead arranger,

principal dealer, principal advisor, trustee, credit rating agency, bond pricing agency,

legal counsel and financial guarantee institution.

3:30 pm - 3:45 pm Break

3:45 pm - 5:00 pm Process to Issue Sukuk

This topic will learn the various processes to issue Sukuk including via private or

public offering and domestic or cross border offering in Brunei, Malaysia and

Indonesia. This topic will also include insight on listing and trading of Sukuk in a

securities exchange and some case studies.

Sukuk Trading

This topic will include operational matters in trading Sukuk through a primary or

secondary market. This topic will also look at the Shariah issues and legal issues of

Sukuk trading. This session will also include case discussion.

END OF DAY 3

TIME DAY 04: THURSDAY, 23 SEPTEMBER 2021

1:30 pm - 2:00 pm Participants log-in into WebEx Platform

2:00 pm - 3:30 pm Pricing and Financial Reporting for Sukuk

This topic will cover accounting basics such as Time Value of Money, simple and

compounding profit, compounding vs. discounting, compounding effect, annual

effective rate and annuity. This topic will also explore the financial reporting in

specific for Sukuk including characteristic of financial reporting for Sukuk, pricing of

Sukuk, measuring yield of Sukuk, measuring discount rates and determining the risk

premium of Sukuk. This session will also include discussion on AAOIFI and IFRS

reporting standards. This session will also include one case discussion.

3:30 pm - 3:45 pm Break

Sukuk: Defaulting and its restructuring; and Role of Dispute Resolution

This topic will explore the essentials of Sukuk structuring principles and the

underlying risks in Sukuk as well as methods to reduce risks. Speakers will share a

case study of Sukuk defaults and share different options of restructuring.

3:45 pm - 4:00 pm

TIME DAY 04: THURSDAY, 23 SEPTEMBER 2021

4:00 pm – 5:00 pm Panel Discussion

Panelist 1: Exploring the current trends in Sukuk and share their experience in

issuing such Sukuk.

Panelist 2: To discuss on Sukuk as a tool for liquidity management: case study from

Brunei Darussalam on Brunei Government Sukuk.

Panelist 3: This panel will provide a brief summary of the whole Sukuk topics which

have been covered and provide a brief summary on why Sukuk is a better

instrument for fund raising for small or large companies. This panel will also include

micro Sukuk and blockchain Sukuk.

Panelists:

• Dr Aznan Hassan, Associate Professor in Shariah at Institute of Islamic Banking

and Finance (IIiBF)

• Dr. Mohd Aidil Yusrie bin Shari, Deputy Head of Financing Office, Ministry of

Finance and Economy (MOFE)

• Dr Eskandar Shah, Associate Professor in International Center for Education in

Islamic Finance (INCEIF)

Moderator: To be confirmed

END OF DAY 4

4:00 pm - 5:00 pm

Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid is currently anAssociate Dean of School of Graduate and Professional Studies at theInternational Centre for Education in Islamic Finance (INCEIF), a postgraduate university specializing in Islamic Finance, established by BankNegara Malaysia. He holds a PhD in Finance from University ofNottingham, United Kingdom. He also holds a Master in InternationalEconomics and Finance from University of Queensland, Australia and aBachelor in Business Administration (Finance) from Islamic UniversityMalaysia (IIUM).

Prior to joining INCEIF, Dr Eskandar was an Assistant Professor atDepartment of Finance, Kulliyah of Economics and ManagementSciences, IIUM. During his doctoral studies, he worked as a Tutor atUniversity of Nottingham and Lecturer at Nottingham TrentInternational College, United Kingdom. Prior to the currentadministration position, he was the Dean of School of Graduate Studies(SGS), Deputy Director of BNP Paribas Centre of Islamic Asset andWealth Management (CIAWM) and Treasurer of Malaysian FinanceAssociation (MFA).

Dr Eskandar is also a Financial Sector Specialist Consultant for WorldBank and Advisor for Brunei Institute of Leadership & Islamic Finance(BILIF). He is also an Associate Editor for Turkish Journal of IslamicEconomics (TUJISE), International Journal of Islamic and Middle EasternFinance (IJIMEF) and Asian Academy of Management Journal ofAccounting and Finance (AAMJAF), and a member of ScientificCommittee, International Finance and Banking Society (IFABS).

Dr. Aznan Hasan is currently a lecturer at the Islamic Law Department,

Ahmad Ibrahim Kulliyyah of Laws, International Islamic University

Malaysia (IIUM). He received his first degree in Shariah from University of

Al Azhar, Egypt. He then successfully completed his Master’s degree in

Shariah from Cairo University with distinction and the board of

examination has recommended that his thesis be published. He then

obtained his PhD in Islamic Law from the University of Wales in United

Kingdom. He also serves as a member of Shariah committee to one of

the leading financial institutions in Malaysia. He taught several subjects

such as Islamic legal theory and Islamic law of transactions. Currently he

is a member Shariah Advisory Council (SAC) of Bank Negara Malaysia

and Securities Commission Malaysia. He also an Independent Shariah

advisor for Islamic securities issuance, approved by and registered with

the Malaysian Securities Commission.

Dr. Aznan Hassan

Associate Professor

Institute of Islamic Banking and

Finance (IIiBF)

Associate Professor Dr Mohammed

Eskandar Shah Mohd Rasid

Associate Dean, School of Graduate

and Professional Studies, INCEIF

SPEAKERS PROFILE

Dr. Mohd Aidil Yusrie bin Shari is a Deputy Head of Financing Office,

Ministry of Finance and Economy, Brunei Darussalam. Earlier, he was

an Assistant Professor (Islamic Finance) at Sultan Sharif Ali Islamic

University (UNISSA) and before that was an Islamic Finance

Specialist at Islamic Development Bank Group (IsDB). Previously he

was the Manager (Capital Market Supervision) of Regulatory

Department, Autoriti Monetari Brunei Darussalam (AMBD) and at

the same time attached to the Islamic Capital Market Business

Group of the Securities Commission Malaysia (SC) under the

‘regulatory attachment’ programme. Prior to AMBD, he was the

Deputy Manager of Shariah Department, Bank Islam Brunei

Darussalam (BIBD).

He holds a PhD and MA of Shariah from UNISSA and a BA of Shariah

from Universiti Brunei Darussalam (UBD). He was awarded the

Investment Foundations Certificate by CFA Institute.

Dr. Mohd Aidil Yusrie bin Shari

Deputy Head of Financing Office,

Ministry of Finance and Economy

(MOFE)

SPEAKERS PROFILE

VIRTUAL WORKSHOPRESPONSIBLE AND SUSTAINABLE FINANCING THROUGH ISSUANCE

OF SUKUK

2 7 - 2 8 S E P T E M B E R 2 0 2 1

This brochure was prepared under the Training on Shariah and Legal Framework on Sukuk and Workshop on Responsible and Sustainable Financing Through Issuance of Sukuk (2019-BRNFINAN-732) project funded by the COMCEC

By the end of this workshop, participants will be able to:

• Identify investor demand for green Sukuk;

• Examine trading analysis post distribution;

• Assess the pricing of green Sukuk;

• Design a green Sukuk framework;

• Evaluate various underlying structures of green Sukuk;

• Assess the compliance of green Sukuk; and

• Formulate legal documentation for green Sukuk.

PROGRAMME OUTCOMES

PROGRAMME OVERVIEW

The workshop aims to facilitate discussions and hands-on practices on responsible and sustainable

financing through issuance of Sukuk. These capacity building programmes will be delivered by

renowned and expert speakers in their respective fields of Islamic finance.

TECHNICAL ARRANGEMENTS

The workshop sessions will be conducted via WebEx Platform.

More details will be shared in due course.

TIME MONDAY, 27 SEPTEMBER 2021

1:30 pm - 2:00 pm

2:00 pm - 2:15 pm

ESG Sukuk Essentials

This session will explore the definition and characteristics of ESG Sukuk. It will also

discuss the global market size (developed vs. developing market) and investor demand

of the ESG Sukuk. Further, the session will also discuss the advantages and issues of

issuing Green, Social and Sustainable Sukuk. This session will also be covering micro

Sukuk initiatives.

Shariah Views on Environmental, Social and Governance (ESG)

This session will cover Shariah views and issues surrounding the Environmental, Social

and Governance.

2:15 pm - 3:45 pm

3:45 pm - 5:00 pm Structuring of ESG Sukuk

This session will explore the different types of Green, Social and Sustainable Sukuk as

well as its underlying structures. This session will also include the key Shariah

consideration when structuring ESG Sukuk.

Issuing ESG Sukuk

This session will include the process of issuing an ESG Sukuk, setting up, designing

and evaluating an ESG Sukuk framework and mapping the Sustainable Development

Goals for ESG Sukuk.

END OF DAY 1

Participants log-in into WebEx Platform

Opening Remarks

3:45 pm - 4:00 pm Break

PROGRAMME

TIME TUESDAY, 28 SEPTEMBER 2021

1:30 pm - 2:00 pm

2:00 pm - 2:15 pm Pricing & Trading Analysis of ESG Sukuk

This session will examine the process to determine the pricing and trading analysis

post distribution of ESG Sukuk including value proposition for investor.

Regulatory, Legal Documentation & Compliance of ESG Sukuk

This session will also explore the legal documentations and disclosure requirements

needed for ESG Sukuk and process to assess compliance to ESG Sukuk.

Role of External Independent Reviewer/Expert

This session will explain the needs and role of external independent reviewer.

2:15 pm - 3:45 pm

Break

3:45 pm - 5:00 pm

Participants log-in into WebEx Platform

3:45 pm - 4:00 pm Break

Breakout Session: Case Study and Mock Sukuk Structuring

This session will include a case study analysis on Khazanah SRI Sukuk, Indonesia

Sovereign Green Sukuk, Sukuk Waqf in Indonesia. Participants are expected to

discuss and present in particular the structure, pricing and trading analysis of the

case studies given.

Closing Panel DiscussionThis session will have 3 panel speakers.

Panelist 1: This panel will explain the adoption of ASEAN Green/Social/SustainableBond Standards and regional Green/SRI Sukuk Framework: its definition andobjectives of the issued standards. This panel will also be sharing their views inissuing an ESG Government Sukuk.

Panelist 2: To discuss and share experience on issuing an ESG Sukuk.

Panelist 3: This panel will discuss from ESG Investor Perspective.

Panelists:• Ahmad Hafiz Abdul Aziz, Financial Sector Specialist, World Bank Group Global

Knowledge and Research Hub;• Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid, Associate Dean of School of

Graduate and Professional Studies, International Centre for Education in IslamicFinance (INCEIF); and

• Edwin Shahyuzad, President Director, PT Sarana Multi Infrastruktur (Persero).

Moderator:• Dr. Mohammad Mahbubi Ali, Head of Economics, Finance, Awqaf and Zakat Cum

Associate Islamic Studies (IAIS Malaysia)

Closing Presentation

This session will provide a brief summary of the whole topic which have been

covered and provide a brief summary on why the current trend is towards ESG

Sukuk. Speaker will share the connection between the ESG Sukuk to the SDG goals

and Maqasid Shariah.

5:00 pm - 5:30 pm

END OF DAY 2

Assoc Prof Dr Mohamed Eskandar Shah Mohd Rasid is currently an

Associate Dean of School of Graduate and Professional Studies at the

International Centre for Education in Islamic Finance (INCEIF), a post

graduate university specializing in Islamic Finance, established by Bank

Negara Malaysia. He holds a PhD in Finance from University of

Nottingham, United Kingdom. He also holds a Master in International

Economics and Finance from University of Queensland, Australia and a

Bachelor in Business Administration (Finance) from Islamic University

Malaysia (IIUM).

Prior to joining INCEIF, Dr Eskandar was an Assistant Professor at

Department of Finance, Kulliyah of Economics and Management

Sciences, IIUM. During his doctoral studies, he worked as a Tutor at

University of Nottingham and Lecturer at Nottingham Trent

International College, United Kingdom. Prior to the current

administration position, he was the Dean of School of Graduate Studies

(SGS), Deputy Director of BNP Paribas Centre of Islamic Asset and

Wealth Management (CIAWM) and Treasurer of Malaysian Finance

Association (MFA).

Dr Eskandar is also a Financial Sector Specialist Consultant for World

Bank and Advisor for Brunei Institute of Leadership & Islamic Finance

(BILIF). He is also an Associate Editor for Turkish Journal of Islamic

Economics (TUJISE), International Journal of Islamic and Middle Eastern

Finance (IJIMEF) and Asian Academy of Management Journal of

Accounting and Finance (AAMJAF), and a member of Scientific

Committee, International Finance and Banking Society (IFABS).

Associate Professor Dr Mohammed

Eskandar Shah Mohd Rasid

Associate Dean, School of Graduate

and Professional Studies, INCEIF

SPEAKERS PROFILE

SPEAKERS PROFILE

Dr. Mohammad Mahbubi Ali is head of economics, finance, awqaf and zakat

unit cum Associate Fellow at the International Institute of Advanced Islamic

Studies (IAIS) Malaysia. He also serves as a Shariah committee member of

Affin Islamic Bank. Previously, he was a researcher at the International

Shari’ah Research Academy for Islamic Finance (ISRA). During his stint at

ISRA, he had contributed to numerous ISRA’s research publications, mainly

involving in the drafting of BNM Shari’ah Standards. He also served as

Shariah consultant for ZICO Shariah Advisory Bhd and Roosdiono &

Partners, Jakarta. He was a lecturer at the University of Kuala Lumpur and

Unitar International University.

In his young age, he has managed to contribute extensively to Islamic

finance through his regular writings featured in the Islamic Finance News

(IFN), Business Islamica, The General Council for Islamic Banks and Financial

Institutions (CIBAFI), New Straits Times and many others. He has published

numerous articles in international and local referred academic journals,

written several book chapters and presented a number of papers in various

international conferences. His paper entitled: “A Framework of Income

Purification for Islamic Financial Institutions,” co-authored with Dato’ Dr.

Asyraf Wajdi Dusuki and Lokmanulhakim Hussain, was conferred best paper

presentation in Sharia Economics Conference, University of Hannover,

Germany, 2013. He received a PhD in Islamic Banking and Finance from the

IIUM Institute of Islamic Banking and Finance, Malaysia. He holds a bachelor

degree in Shari’ah Business and Financial Management from the Islamic

Business School, Tazkia Indonesia and Chartered Islamic Finance

Professional (CIFP) from INCEIF, The Global University in Islamic Finance,

Malaysia.

Ahmad Hafiz Abdul Aziz is a Financial Sector Specialist with the World

Bank Group Inclusive Growth & Sustainable Finance Hub in Malaysia. Mr.

Abdul Aziz brings with him fifteen years of relevant experiences in

financial sector development, particularly in the area of Islamic capital

markets, Islamic social finance, green and sustainable finance and

financial inclusion. He has worked as a Principal Assistant Director at the

Ministry of International Trade and Industry, and as Manager of the

Islamic Capital Market at the Securities Commission Malaysia. He holds a

Master’s degree in Islamic Banking and Finance from Bangor University,

United Kingdom which he completed under the Chevening scholarship,

and a Master of Arts in Islamic Revealed Knowledge and Heritage (Fiqh

and Usul Fiqh) (Honors) from the International Islamic University

Malaysia.Ahmad Hafiz Abdul Aziz

Financial Sector Specialist, World

Bank Group Global Knowledge and

Research Hub

Dr. Mohammad Mahbubi Ali

Head of Economics, Finance, Awqaf

and Zakat Cum Associate Islamic

Studies (IAIS Malaysia)

Indonesian Citizen, based in Indonesia. Edwin Syahruzad obtained Bachelor’s

Degree in Economics from University of Indonesia in 1993.Previously he served

as Financing and Investment Director of PT SMI (2014-2019) pursuant to the

Minister of Finance Decree No. 389/KMK.06/2014 and Executive Vice

President/Head of Financing & Investment Division (2009-2014). Before joining

PT SMI, he served for 9 years at PT Danareksa (Persero) and culminating in the

position of Director at PT Danareksa Sekuritas. In addition, he worked as an

Analyst at PT Penthasena Securities (1996-1999), PT Amstel Securities

Indonesia (1995-1996), The Industrial Bank of Japan, Jakarta Branch (1993-

1995) and as Audit Committee Member at PT Timah, Tbk. (Persero) (2011-

2012).

He was appointed as President Director of PT SMI since 13 August 2019

pursuant to the Minister of Finance Decree No. 651/KMK.06/2019. As President

Director, he is in charge of overseeing the overall operation of the company,

including the development of the company’s long term strategy, and ensuring

strict compliance to good corporate governance practices in all of the

company’s operations.

Edwin Syahruzad

President Director PT Sarana Multi

Infrastruktur (Persero)

SPEAKERS PROFILE

The Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Cooperation (COMCEC) wasestablished at the Third Islamic Summit Conference held in Mecca/Taif in 1981. COMCEC became operational at the Fourth IslamicSummit in 1984, with the election of the President of the Republic of Turkey to its chairmanship. The mandate of the COMCEC is todraw up programmes for joint action, co-ordinate and follow-up the activities pertaining to economic co-operation within theframework of the Organization of the Islamic Cooperation (OIC).

The COMCEC Project Funding (CPF) is a financing mechanism introduced by the COMCEC Coordination Office (CCO) in 2013. Itfinances projects submitted by OIC Member Countries and the relevant OIC institution to realise the strategic objectives and outcomesof the COMCEC Strategy.

For more information, please visit www.comcec.org

The Ministry of Finance and Economy is an agency of the Government of Brunei Darussalam which is responsible for matters relating todomestic an external economic and finance policy. Its vision is to ensure Brunei Darussalam's status as a dynamic, prosperous andprogressive nation and its mission is to deliver economic and financial sustainability. Key functions and roles, among others, focus onensuring the country's financial stability as well as providing policies and guidelines towards enhancing Brunei Darussalam's economicgrowth and development.

For more information, please visit www.mofe.gov.bn

Established in 2010, Brunei Institute of Leadership & Islamic Finance (BILIF), formerly known as Centre For Islamic Banking, Finance AndManagement (CIBFM) is a training institution under the purview of Brunei Darussalam Central Bank (BDCB) that provides high-qualitylearning solutions and organises signature and collaborative events for human capacity development in the areas of Islamic Financeand leadership. Since its inception, BILIF has conducted over 500 programmes and 58 events for more than 13,000 participants,including a new suite of Virtual Instructor-Led Training (VILT) programmes and online events (figures as of June 2021).

For more information, please visit www.bilif.com.bn

For more information on the COMCEC Virtual Training & Workshop, please contact the following persons at

Mohammad Hanizam bin Alidin+673 827 1140hanizam@bilif.com.bn

Nurhazerah binti Haji Abd Halim+673 827 1140hazerah@bilif.com.bn

ABOUT THE MINSTRY OF FINANCE AND ECONOMY (MOFE)

CONTACT DETAILS

ABOUT COMCEC

ABOUT BRUNEI DARUSSALAM CENTRAL BANK (BDCB)Brunei Darussalam Central Bank (BDCB) conducts the country’s monetary policy, issues the Brunei currency, as well as regulates andsupervises banks and other financial institutions in Brunei Darussalam. Among BDCB’s objectives include to achieve and maintaindomestic price stability; ensure the stability of the financial system, in particular by formulating financial regulations and prudentialstandards; assist in the establishment and functioning of efficient payment systems and to oversee them; and foster and develop asound and progressive financial services sector.

For more information, please visit www.bdcb.gov.bn

ABOUT BRUNEI INSTITUTE OF LEADERSHIP & ISLAMIC FINANCE (BILIF)

Brunei Institute of Leadership & Islamic Finance (BILIF)