Islamic finance transaction structures

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Practice notes
Novation is a means by which a lender can transfer its interest in a loan to another lender.This Practice Note looks at what is meant by novation...
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9th Nov
Practice notes
Assignment is a means by which a lender can transfer its interest in a loan to another lender.For an overview of the reasons why a lender might...
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9th Nov
Practice notes
This Practice Note considers the costs that a lender operating in the interbank market will incur when providing funding to a borrower and the steps...
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9th Nov
Practice notes
In many commercial finance transactions, lenders expect to be given some form of credit support to increase their confidence in being able to recover...
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9th Nov
Practice notes
On an acquisition finance transaction, the borrowing group, in addition to the debt (whether loans or bonds) required to fund the transaction, will...
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9th Nov
Practice notes
This Practice Note explains the features of three common types of loan facility:•overdrafts•term loans, and•revolving credit facilities (RCFs)It also...
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9th Nov
Practice notes
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...
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9th Nov
Practice notes
What is a direct agreement?Direct agreements are very common in project finance transactions. A direct agreement is an agreement which gives the...
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9th Nov
Practice notes
Development of the Loan Market Association (LMA) documentationThe project to develop the LMA investment grade documents began in 1998 as a response to...
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9th Nov
Practice notes
What are incremental facilities?An incremental facility is feature included in a credit agreement where, subject to meeting certain pre-agreed...
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Produced in partnership with Osborne Clarke 12th Jan
Practice notes
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...
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9th Nov
Precedents
This Deed is made on [insert day and month] 20[insert year]Parties1[Insert name of Chargor], a company incorporated in England and Wales with...
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9th Nov
Practice notes
This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having...
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9th Nov
Practice notes
BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...
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9th Nov
Practice notes
IntroductionShari'ah (also Sharia, Shariah or Shari’a) (literally, in Arabic, 'the path towards the watering place') or Islamic law is the legal...
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9th Nov
Practice notes
This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge...
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9th Nov

Most recent Islamic finance transaction structures content

Practice notes
A basic murabaha and a commodity murabaha arrangement can both be structured to facilitate a single transaction, or to operate on a revolving basis so...
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Produced in partnership with King & Spalding 28th Apr
Practice notes
Shari’a-compliant financing arrangements (also known as Islamic financing arrangements) can take a number of forms. The UK has introduced specific...
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Produced in partnership with Sarah Squires of Old Square Tax Chambers 9th Apr
Practice notes
Key features•This is a form of commercial partnership where two or more parties both provide capital (and real assets) as well as time and effort,...
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8th Apr
Practice notes
Takaful is a means of providing risk-cover conducted in line with the principles of Islam. To understand the mechanics of takaful and its...
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Produced in partnership with Dr Hiba Allam, PhD in Islamic Insurance Law 8th Apr
Practice notes
Key features•This structure is also known as a forward sale agreement and involves the Islamic Financial Institution (IFI) purchasing goods on behalf...
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8th Apr
Practice notes
Like their conventional counterparts, takaful operators (ie Islamic insurance providers) have a number of ways to distribute their Shari’ah compliant...
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Produced in partnership with Dr Hiba Allam, PhD in Islamic Insurance Law 8th Apr
Practice notes
Key features•This is the equivalent of leasing in an Islamic finance structure and is a contract under which the owner (lessor) purchases an asset and...
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8th Apr
Practice notes
Key features•This is a form of investment management. Two parties form a commercial partnership with the Islamic Financial Institution (IFI) or group...
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8th Apr
Practice notes
Key features•This is a form of project finance used to fund the manufacturing of goods or assets that are not yet in existence. It is most commonly...
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8th Apr
Practice notes
Key features•Murabaha is one of the most controversial, but commonly used Islamic finance techniques. It is used particularly in the Middle East for...
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8th Apr
Practice notes
Key features•A Customer does not obtain a physical asset for their own use, but to engage in a series of purchase and sales transactions that result...
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8th Apr
Practice notes
Takaful is the provision of risk-cover conducted in line with the principles of Islamic law (Shari’ah). It offers a unique and important alternative...
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Produced in partnership with Dr Hiba Allam, PhD in Islamic Insurance Law 8th Apr
Practice notes
IP COMPLETION DAY: 11pm (GMT) on 31 December 2020 marks the end of the Brexit transition/implementation period entered into following the UK’s...
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8th Apr
Practice notes
This Practice Note provides an overview of the differences between the Sukuk markets in the Middle East and Far East, including recent trends and...
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Produced in partnership with Trowers & Hamlins 5th Mar
Practice notes
Introduction—a pure theory or a dead practice?For a number of years, Islamic financing has been offered by both Islamic financial institutions (IFIs),...
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Produced in partnership with Morgan Lewis 5th Mar
Practice notes
Key elements of bai salamAs discussed in more detail in the Practice Note: The structure and required elements of a bai salam transaction, in...
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Produced in partnership with Trowers & Hamlins 5th Mar
Practice notes
TerminologyGiven the historic origins of Shari'ah principles and jurisprudence in general and those underlying the development of bai salam, much of...
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Produced in partnership with Trowers & Hamlins 5th Mar
Practice notes
Introduction to musharaka—a profit and loss sharing instrument of Islamic financeA fundamental principle of Islamic finance is that of ‘no profit...
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Produced in partnership with Morgan Lewis 5th Mar
Practice notes
Introduction—transactional Islamic financeThere are a number of different opinions and principles iterated by Shari’ah board members when interpreting...
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Produced in partnership with Morgan Lewis 5th Mar
Practice notes
Murabaha contracts typically provide that the laws of England and Wales will govern agreements performed in the UK. A number of factors favour this...
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Produced in partnership with King & Spalding 26th Feb

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