Capital Markets and Securitisation
A team of qualified and experienced professionals with corporations, financial institutions, governments and institutional investors world over strive hard to make our Capital Markets and Securitisation division the most trusted provider of Shariah-compliant integrated capital markets and securitisation solution to clients across the globe.
The capital market is the market for securities, where companies and governments can raise long-term funds.
It consists of:
- The primary market, where new issues are distributed to investors, and
- The secondary market, where existing securities are traded.
Sukuk
Sukuk is the Arabic name for a financial certificate.
It is a bond with similar features to the conventional one, except that it is asset-backed and presents a proportionate beneficial ownership in the underlying asset.
The return on the sukuk is drawn from the earnings generated by the client's lease of the asset.
Sukuk's vital potential is in transforming an asset's future cash flow into present cash flow.
Securitisation
Securitisation is a structured finance process, which involves pooling and repackaging of cash-flow producing financial assets into securities that are then sold to investors. The name "securitisation" is derived from the fact that the financial instruments used to obtain funds from the investors are in the form of securities.
All assets can be securitised so long as they are associated with cash flow. Hence, it is asset-backed securities.
