Sukuk are purely a certificate based mode of structuring a capital market
instrument. LMC offers a broad variety of such instruments. Our current client
base includes sovereign entities, financial institutions and corporate entities.
The purpose for issuance of a Sukuk may vary though in the prevailing
environment we have frequently found the purposes to be project finance, general
corporate funding for working capital or expansion, corporate refinancing, asset
securitisation and acquisition finance.
LMC provides each and every one of its clients with tailor made Sukuk structures
and documentation to meet their requirements.
LMC aims to apply its expertise and prolonged track record in the Islamic Sukuk
market by providing Asset Management services including advisory and Sukuk
portfolio management. A specialized team fully dedicated to this service is
available to provide tailored Sukuk portfolio management to meet clients’
performance requirements with the lowest levels of risk.
The Short Term Sukuk Program
In line with the Asset Management activities, LMC structured the Short Term Sukuk
Program issued by The Short Term Sukuk Centre B.S.C. (c) (the “Company”) The
Company, acting through its Agent acquires assets ('STS assets') from various
sources. These STS assets have varying tenors and returns. These assets are then
pooled into a single STS Program portfolio and securitized through the issuance
of short term Investment Sukuk with approximately monthly tenors ('STS
Investment Sukuk'). STS Investment Sukuk represents an indivisible fractional
ownership interest in the underlying STS assets of the Company.
The Company in its capacity as an Issuer issues a tradable low risk liquidity
management product which provides investors with opportunity to invest in short
term sukuk. Monthly tenors are secured by a diverse portfolio of asset backed
corporate and sovereign Sukuk instruments arranged and administered by
recognized arrangers and Sukuk issuances arranged by LMC. The Short Term Sukuk
program is the first such repackaged Sukuk product to be offered into the
Islamic banking market where long term growth is highly anticipated.
LMC aims to endeavor into private equity activities and to leverage on its
inherent network and relationships in the GCC region in order to take advantage
of the range of attractive investment opportunities present in the local and
regional markets.
As part of raising private equity, LMC conducts and coordinates with its client
the modelling of transactions, identifying and resolving prospective legal and
corporate issues arising from the equity offering, prepares offering
documentation and presentation materials, articulates all placement related
activities, and conducts the offering process. Throughout, LMC is solely
focussed on ensuring the successful completion of the equity raising
transaction.
Equity capital markets in the GCC have witnessed incredible growth and correction
in the past decade. Due to the limitation on the number of investment avenues
available, liquidity within the GCC economies usually finds its way back to the
local stock markets. Corrections in the past throughout the GCC Equity Markets
have limited the number of IPOs however GCC markets are doing their utmost to
complement economic activity with the establishment of new regulations and
financial centres through which both local and regional capital can be attracted
with no restriction on the foreign ownership of shares. These formulate an
integral part of and stimulate growth in the IPO activity and LMC intends to
take advantage of such favorable economic environment in the future.