The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

Islamic finance awards 2008: Most innovative deal

The Islamic finance industry is expanding so rapidly and in such a fragmented manner that barely a month goes by when some financial institution does not claim to have launched a new shariah-compliant asset class.

 Al-’Aqar Capital

Often, a little scratching under the surface will find that the asset class has actually been developed before, perhaps in a slightly different way, by someone else – and sometimes even by the same institution.

Nevertheless, the M$300 million ($91 million) sukuk issued and backed by Al ‘Aqar Capital is a genuinely innovative product. It is the first time an Islamic Reit (Al-‘Aqar KPJ) has issued a sukuk. In addition, the Reit itself, which was launched in 2006, is the world’s first Islamic healthcare Reit (the properties consist of six hospitals in Malaysia), as well as the world’s first listed Islamic Reit. The funding provided by the sukuk ijara programme is allowing the Al-‘Aqar Reit to increase its total asset size from M$481 million to M$651 million. This will make it the largest Islamic Reit and the second-largest Reit in Malaysia.

Seohan Soo, director of debt capital markets at AmInvestment Bank, the lead arranger and principal adviser for the deal, says what made it stand out was the quality of its ijara (lease-back) structure. He says it is the first sukuk ijara to combine parallel master lease agreement (between Al-‘Aqar KPJ Reit and its wholly owned subsidiary, Al-‘Aqar Capital) and sub-lease agreements (between Al-‘Aqar KPJ Reit and the hospital operators).

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree