The Role of Sukuk in Islamic Capital Markets
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for the contract of ijarah due to its wide acceptance by Islamic jurists. Nonetheless, securing
eligible Shariah-compliant assets that are unencumbered has been identified as a limiting
factor vis-a-vis meeting the expected asset-pricing guidelines. Hence over the years, more
sukuk issues have adopted a hybrid structure (e.g. Figure 3.3 - Malaysia’s global wakalah
sukuk issuance) – a combination of more than one Shariah contract to meet the commercial
reasoning for the efficient use of assets.
Based on historical sukuk issuance, wakalah or wakalah bil istithmar sukuk has a number of
variations in the underlying assets, as explained below.
(i) Combination of ijarah and existing debts
Figure 3.2 above depicts the IDB’s portfolio comprising 33% of tangible assets and 67% of
intangible assets (istisna’ receivables and/or murabahah receivables). The percentage used in
the portfolio sets the precedent for future ijarah sukuk structures adopted in other countries.
(ii) Combination of ijarah and newly created debt
Cagamas’ sukuk al-amanah li al-istithmar used a combination of ijarah and newly created debt
in its RM5.0 billion ICP and MTN programmes in 2010. Ijarah contracts represented 50% of
the portfolio.
(iii) Combination of mudarabah and newly created debt
Gulf Investment Corporation’s RM3.5 billion MTN sukuk programme in 2011 adopted a
structure that incorporated mudarabah contracts and newly created debt.
(iv) Combination of ijarah, shares and newly created debt
This structure was used in the GoM’s USD2.0 billion wakalah sukuk issuance in 2011. The
sukuk created a new landmark as the largest ever USD sovereign sukuk, the largest issuance at
that time by Malaysia in the international USD markets, and the first 10-year USD sovereign
sukuk.
(v) Combination of intangible assets (e.g. vouchers representing the right to use a
specific number of travel units), shares and lease assets
Figure 3.3 above illustrates Malaysia’s global sukuk issuance with this kind of assets
combination.