'Sukuk' an alternative source of financing for constructing Padma Bridge
Published : Wednesday, 06 February 2013
(from left) Wali-ul-Maroof Matin, Managing Director, Alliance Capital Asset Management Ltd, Abdul Mannan, Managing Director, Islami Bank Bangladesh Ltd, Shah Abdul Hannan, former deputy governor of Bangladesh Bank & Chairman, Central Shariah Board of Islamic Banks and Ahmed A Khalid of Islamic Development Bank seen at the IFN Road Show 2013 held in a city hotel Tuesday. FE Photo
Islamic 'Sukuk' could be an alternative source of financing for constructing Padma Bridge.
Sukuk is one type of Islamic Bond, which is asset based or asset-backed, where there is an asset (or pool of assets) underlying every transaction and the ownership of that asset or pool is transferred to investors.
A day-long international conference on Islamic finance, titled 'Islamic Finance news Roadshow' held Tuesday in the city discussed on the issue. The Islamic Finance news Roadshow brought together world's industry experts and the market movers of the country's Islamic finance industry.
"Thus investors enjoy all rights and obligations that accompany ownership. In asset-backed structures sukuk holders have recourse to the underlying assets," Touhidul Alam Khan, one of the panelists said.
The other panelists and delegates have also gave their thought-provoking speeches on this issue suggesting that the Government of Bangladesh can work on it through cross-border "SUKUK" transaction to raise required fund under syndication process.
This one-day event was address key issues pertinent to the country's Islamic financial market, Challenges & Opportunities in Bangladesh's Islamic
Finance Sector, Possibilities and Opportunities for Diversification of Islamic Products, Facilitating Shariah Compliant Investment Flows in Bangladesh and South Asia through innovative products, structures and channels, crucial steps to take Bangladesh's Islamic Finance to the Next Level.
Among them, Ahmed A Khalid - Regional Head (Asia), Coverage & Partnership Department, Islamic Corporation for the Development of the Private Sector, Islamic Development Bank, Aishath Muneeza - Head of Islamic Finance, Capital Market Development Authority, Maldives, Md. Touhidul Alam Khan, ACMA Senior Executive Vice President & Head of Corporate Assets & Client Origination of Bank Asia, Bangladesh, Mufti Ehsan Waquar Ahmad - Shariah Consultant, Pakistan, Mahbub Jamil - Head of Structured Finance, NDB Capital, Mahmud Hossain - Chief Executive Officer & Co-Founder, Millennium Information Solution, Dr. Md Mizanur Rahman - Senior Vice President, Research and Development, Islami Bank Bangladesh, Mohammad Abdul Mannan - Managing Director, Islami Bank Bangladesh, Mohammad Shoaib, CFA - Chief Executive Officer, Al Meezan Investment Management, Pakistan, Mushfique Mahmud - Legal Consultant, Dar Al Sharia, Shah Abdul Hannan - Former Chairman, Islami Bank Bangladesh & Founder Member, Central Shariah Board of Islamic Banks and Wali-ul-Maroof Matin - Chairman & Managing Director, Alliance Capital Asset Management were present.
The growth potential for Bangladesh's Islamic finance industry is enormous, and coupled with a steadily growing economy and financial reforms. With support from the Bangladesh government, financial regulators and the central bank, Bangladesh can be poised to become the next hub for Islamic finance in Asia and on a global scale, the world Islamic scholars opined in the Roadshow.
Ms. Navina Balasingam, Events Program Director of RedMoney Group, Malaysia anticipates that this Islamic Finance News Roadshow- 2013, Bangladesh will help to explore the growth opportunities for Islamic finance, as well as tax and regulatory developments to boost the country's Islamic capital markets. With the proper implementation of regulations, education and understanding of Islamic financial products, and the provision of sufficient infrastructure, Bangladesh is set to become a major player in the field of Islamic finance of the world.
The RED Money, organizer of the workshop is working on expanding the realms of Islamic finance all over the world. It has been organizing key Islamic finance events for eight years with the focus heavily on education and development. Besides, IFN Roadshow has been visiting key developing Islamic financial markets for the last six years to guide and assist all interested parties to development.
In the conference more than 100 delegates from all over the globe, who are mainly market experts and regulators attended and shared their knowledge and expertise with the Bangladeshi market, and explore the opportunities within the country for Islamic issuers, investors, corporate and financial institutions.
Editor : Moazzem Hossain,
Published by the Editor for International Publications Limited from Tropicana Tower (4th floor), 45, Topkhana Road, GPO Box : 2526 Dhaka- 1000 and printed by him from City Publishing House Ltd., 1 RK Mission Road, Dhaka-1000.