IDB Hybrid Sukuk: Case Study questions

Following the recent string of successful Sukuk issues, and the fact that they are a relatively new concept in corporate finance, your employer, an Investment Bank, has selected your group to make presentations to the Board regarding the key issues involved.

Your group must consider the following questions and you must present your findings to the whole class. Please be ready to explain any technical concepts to the class. You will be expected to defend your answers.

Remember that "time is money" and that your responses must be succinct and not overly descriptive. In other words - get to the point!!

1. Outline the role of the IDB.

2. Describe the exact nature of the IDB Sukuk

3. What Islamic modes of finance underpin the IDB Sukuk?

4. Describe how these modes of finance work and the exact relationship they have with the IDB Sukuk

5. What Sharia Board requirements were put in place?

6. Are issues of corporate governance relevant to this issue?

7. What was innovative about this issue?

8. How was the issue rated and by whom?

9. What risks for investors are associated with investing in sukuk?

10. Was the issue a success?

11. What lessons can be learnt for the issue of future sukuk? How do the critical factors for IDB Sukuk compare with those for the other Sukuk issued?