Trowers & Hamlins LLP

This Practice Note looks at the key elements of a bai salam transaction before considering the documentation and mechanics used including, in particular, the mechanism and key terms of a master bai salam agreement, stand-alone bai salam agreements and the agency agreement.

This Practice Note explains the key elements of build to rent transactions, including how they differ from traditional residential development finance, common financing structures, documentation considerations, regulatory and planning issues and the key legislation affecting the sector.

This Practice Note covers the features of a typical commodity Murabaha arrangement (usually metals traded on the London Metals Exchange) entered into to provide working capital or acquisition financing for the customer. It also considers the distinction with a tawarruq arrangement.

This Practice Note discusses the main criticisms of contemporary Murabaha arrangements, in particular that most current transactions do not meet all of the established criteria, such transactions do not fit with the goals of Islamic finance and that the transactions simply replicate conventional financing but in a more costly and uncertain manner

This Practice Note sets out the key ESG issues in real estate finance (REF) transactions. It explains the key ESG initiatives, guidelines and legislation that are relevant to REF transactions, the use of green loans and sustainability-linked loans in the REF sector, issues to consider for ESG due diligence, ESG provisions in REF documentation and greenwashing.

This Practice Note considers how Islamic finance has evolved and focuses on the rise of Mudaraba as a transaction structure. In particular, the note considers the structure and required elements of a Mudaraba transaction and looks at the key transaction documents

This Practice Note considers the factors that have led to Murabaha contracts typically being governed by the laws of England and Wales in the UK and the reasons Shari’ah has not commonly been adopted. It also looks at two specific English cases concerning Murabaha agreements

This Practice Note considers the differences between the Sukuk markets in the Middle East and Far East and looks at recent trends and types of transaction structure commonly used.

This Practice Note covers the structure of typical Murabaha documentation and compares the differences between a Murabaha agreement and the loan agreement in a conventional transaction. In particular, it considers ‘rollover’ differences, prepayments, conditions precedent and covenants

This Practice Note examines the basic features of any Shari’ah compliant contract before considering the specific requirements for a musharaka arrangement, including execution, independence and permitted terms and conditions. The note also covers the additional documentation which may be required to give effect to the agreed relationships

This Practice Note looks at the key considerations for an Obligor when deciding how to structure any Sukuk issuance. It also examines the main documents used in each structure and highlights the differences between them, the key terms required in all Sukuk transactions, as well as the recent trends and regulatory developments in the Sukuk market

This Practice Note considers the key underlying mechanics of takaful and the documentation required, including both at the pre-contractual and post-contractual stages.

This Practice Note covers the differences between conventional financing and Islamic finance and the relevant provisions under English law.

This Practice Note explains the key characteristics and rationale behind bancatakaful. It considers how such transactions are conducted and the documentation required, including in particular the bilateral distribution agreement.

This Practice Note considers the elements required for a typical takaful transaction and the basic underlying structures of wakala, mudaraba and the hybrid model promoted by a number of international organisations.

This Practice Note covers the key principles of a Musharaka arrangement and in particular looks at the different types of Musharaka transaction, the method of establishing a musharaka partnership and the rules which must be adhered to for the partnership to be valid. The note also considers the usual term for such an arrangement and how a Musharaka partnership may be terminated

This Practice Note considers the main difference between conventional bond structures and Sukuk issuances. It also provides an outline of the key types of Ssukuk structure and provides an analysis of factors affecting the historical growth of the Sukuk market and recent market trends

This Practice Note covers the key terminology used in bai salam transaction structures and the impact of different Shari’ah schools of thought. It looks at the usual structures of a bai salam transaction and examines the key elements required, as well as considering the main differences with other transaction structures, particularly istisna’a.

This Practice Note covers the basic structure and required steps in a typical Murabaha (‘cost plus profit financing’) transaction. It also considers the elements that are required for a valid Murabaha transaction under Shari’ah.

This Practice Note considers the current status of Musharaka in the market. It discusses the main issues with using the Musharaka structure and considers criticisms on the use of Musharaka from within the Islamic finance industry.