IIFM publishes Ijarah Sukuk standards

Tuesday, 13th October 2020, Manama, Kingdom of Bahrain - The International Islamic Financial Market (IIFM) announced the publication of its Sukuk Al Ijarah Standard Documentation Templates. The suite of standardized documentation consists of Template Prospectus, Sale and Purchase Agreement, Ijarah Agreement, Service Agency Agreement, Purchase Undertaking, Sale and Substitution Undertaking and Declaration of Trust.

The purpose of the Sukuk standard documentation templates is to provide the industry with a standardized set of documents addressing clauses that are challenged and are repetitive during the drafting of the Sukuk prospectus and related issuance documentation, while also standardizing definitions and updating Shari’ah requirements.

The Sukuk issuers, lead arrangers, legal advisors and other related parties will greatly benefit from this suite of standard documents as it will lead to efficiency and cost reduction in drafting of voluminous Sukuk documentation for issuers and offer greater transparency and comfort to investors.