This document summarizes an Islamic finance presentation on emerging opportunities for Islamic ship financing. It outlines the concepts of Islamic finance, including a prohibition on interest (riba) and a focus on profit and loss sharing. It discusses the progress of Islamic banking, current market size, and recent deals in Islamic ship financing. Structures for Islamic ship financing include existing vessel financing using an ijara (lease) structure and newbuild vessel financing using an istisna'a (procurement contract) structure. Case studies of recent Islamic ship financing deals are also presented.

1. AFTAB HASAN Managing Director & CEO Maritime Management Company (MMC) Dubai, U.A.E. 18th – 19th April 2010 ‘ Islamic Finance - An emerging mode for Shipping Industry in current Economic Scenario’

14. Structure # 1: Ijara Structure (for Existing Vessel) 1. SPV formed for the purpose of arranging the facility. The SPV is to be administered by a Facility Agent. 2. SPV enters into a Purchase Agreement with the Obligor for purchase of existing and pre identified vessel (or vessels) (“Asset Pool”). 3. Participants and Facility Agent enter into an Investment Agency Agreement through which the Participants fund the Facility Agent to purchase the Asset Pool. 4. Once purchased, the SPV (acting through the Facility Agent) will enter into an Ijara (lease) Agreement to lease the Asset Pool to the Obligor for a period equal to the facility tenor against payment of rental consideration . 5. SPV enters into a Servicing Agency Agreement with the Obligor through which it appoints the Obligor as its Agent responsible for Major Maintenance & Structural Repair and the procurement of Insurance on the Asset Pool. 6. The Obligor also provides a Purchase Undertaking wherein it undertakes to purchase the Asset Pool from the SPV either at the end of the lease term or on the occurrence of an event of default.

20. Case Studies