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CA-8.2.2

An Islamic bank licensee may act as originator of Sukuk issues where the ownership of assets held by the Islamic bank licensee is transferred to holders of Sukuk by means of a securitisation. Such a securitisation may offer the Islamic bank licensee one or more of the following benefits:

(a) Increased liquidity, since a relatively illiquid asset (such as an asset held as lessor in an Ijara or Ijara Muntahia Bittamlīk) is converted into cash paid by the investors in the Sukuk subscription; and/ or
(b) Reduced capital requirements, insofar as the securitisation may permit the issuing Islamic bank licensee to exclude the assets from the calculation of its RWAs.
January 2015