In addition to TSH Murabahah, TSH has two other wholly-owned special purpose funding vehicles: TSH Sukuk
Ijarah Sdn Bhd (TSH
Ijarah); and TSH Sukuk Musyarakah Sdn Bhd (TSH Musyarakah).
With primary focus on recoveries and regularization of non-performing accounts, financing portfolio has shrunk hugely on account of curtailment in murabaha financing and lately also due to limited disbursements in
Ijarah.
One of the main uncertainties is whether sovereign issuers will be willing to directly pledge infrastructure assets to sukuk investors or accept the most common structure, known as
Ijarah sukuk.
This type of
Ijarah includes every transaction in which the service of a person is hired by somebody else.
The Government's decision to extend for another three years (until year of assessment 2018) the deduction of expenses incurred in the issuance of Sukuk based on
Ijarah and Wakalah, is expected to boost issuances structured on these two Islamic principles.
Average investment in GoP
Ijarah Sukuk represented around 68 per cent of net assets during FY14.
The Islamic Corporation for the Development of the Private Sector (ICD) and partners
Ijarah Management Company (IMC) and Maldives Islamic Bank (MIB) together won three awards at the Asia Islamic Banking Excellence Awards, presented by CMO and held in Singapore on the 1st August 2014.
The bank said that it was planning to issue a three-year Sukuk Al
Ijarah, which would be backed by Highway Land, together with all structures, fixtures, construction and improvements of M-3, a 52km long strip of motorway situated in Punjab.
As part of the agreement, Hidd Al Sdiyat beachfront development homeowners will benefit from ADCB's attractive mortgages and
Ijarah financing options.
Moody's considers the sukuk, which follows the structure of an
Ijarah transaction, to be a senior unsecured obligation.
Mowasalat on Tuesday signed an agreement in this regard with two franchisee companies Al Million and Al
Ijarah, which are already partnering with the former to operate taxis in Qatar.
This was announced at a meeting where agreements were signed between Mowasalat and its two existing partner franchisees, Al Million and Al
Ijarah, in which the two agree to add 150 cars each to their existing fleet in the coming months.
