2. Islamic Finance
Classifications – June 2014
The distinction we apply is between
Islamic Finance structures which
mirror conventional bank financings
on the one hand and conventional
bond financings on the other.
Following on from that further
distinctions are made based on the
type of Islamic finance structure:
Ijara (lease based); mudaraba
(cost-plus purchase
intermediation); istisna
(manufacture); musharaka (lender-
borrower joint venture) and wakala
(trust).
Debt Capital Markets
Islamic Finance
Islamic Finance Bank
Loans
Other DCM
Islamic Finance Bonds
and Sukuk
Wakala
Wakala
Ijara
Musharaka
Ijara
Mudaraba
Musharaka
Istisna Murabaha
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3. Wakala Example –
Emaar Malls Reg S Sukuk
• Emaar Malls Group 10 Year Wakala Sukuk Issuance - Emaar Malls the operator of the biggest
shopping mall in Dubai, has issued a USD750m Reg S sukuk with a stipulated profit rate of 4.564 per
cent, indicating a yield of approximately 182 basis points over mid-swaps. This represents a good
outcome for the issuer and clearly Dubai has benefitted from some of the negative noise
surrounding other emerging market countries. The bonds utilise a wakala structure (similar to a
true sale securitisation) issued via a Cayman Islands SPV. The bonds are rated Baa2 by Moodys
Investor Service and BBB- by Standard and Poor’s. Financial Centre : Dubai Law Firm :
Linklaters Lawyer : Jonathan Fried Practice Area : Debt Capital Markets Classification : Islamic
Finance Sub-classification : Islamic Finance Bonds and Sukuk, Wakala: Industry : Real Estate
Investment & Services Advised Party : Issuer Value USD Equiv: 500.01-1000.00M Issuer
Jurisdiction : UAE Listing Jurisdiction : UAE
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4. Emaar Malls Group
Wakala Bonds due 2024
Emaar Malls (as Seller of
Wakala Assets)
Issuer/Trustee
Certificate Holders
Emaar Malls (as
Servicer)
Emaar Malls (as
Purchaser of Wakala
Assets)
Dissolution Payment at Maturity – Trust
Dissolved , Re-purchase of Wakala
Assets
Sale of Wakala Assets Asset Servicing Agreement
Declaration of Trust
Orphan SPV (Cayman Islands)
Wakala Assets = real estate
assets owned by Emaar Mall
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