Main Steps for Sukuk Issuance

Prospective new sovereign/corporate issuers (in the emerging and frontier markets) often tumble into unchartered territory with debut Sukuk issuances, especially if that jurisdiction of an issuer has never issued an Islamic debt instrument before. There is no easy crash course that can summarise what these prospective issuers can expect as each jurisdiction has its own unique challenges.

Here is a summary of the main common challenges and what prospective new issuers should expect with debut issuances:

1) Regulation

On the regulation side, issuers need to be mindful of local and international regulations that regulate debt issuance. Sukuk offerings may take longer to structure and document than conventional offerings owing to the...