continued... - Islamic Finance News

Islamic Finance news Guide 2008
LMC’s Role in the Primary and Secondary Islamic Capital Market
(continued...)
• The issuance of a global Sukuk table (www.lmcbahrain.
com/Global-table.asp).
• Publication of executed secondary market Sukuk trades
commencing from the second half of 2005 (www.
lmcbahrain.com/trade.asp).
• Establishment of LMC pages on Bloomberg (codes
“LMCS” and “Sukuk”). These pages have been jointly
developed by LMC’s senior management in cooperation
with Bloomberg. The joint intention is to provide
subscribing investors with access to static Sukuk data
and industry standard modeling functionalities for a
range of Sukuk.
Through both its primary market fi nancing activities and
market contacts, LMC is strategically positioned to coordinate
and execute secondary market transactions in Sukuk. Given
the increasing depth of the primary market, LMC has found
that the appetite for secondary market buying and selling
services is ever increasing.
“Our approach centers on
structuring attractive transactions
in partnership with both our clients
and placement agents”
Business services and products offered
Short-term investment services
LMC’s conducts extensive Sukuk asset sourcing and repacking
as part of the offering, placement and administration of its
short-term Sukuk program.
Structured fi nance services
LMC’s structured fi nance services provide an end-to-end
solution tailored to meet the needs of our clients in the
international marketplace. Services offered include the
following:
• Finance raising: LMC has extensive experience in the
structuring, issuance, marketing and post-issuance
administration of tradable Islamic capital markets
instruments such as Sukuk. Our approach centers on
structuring attractive transactions in partnership with
both our clients and placement agents. As such, our
activities to date are playing a key role in the continued
growth of both publicly quoted and unquoted businesses
in the GCC. We are in the process of extending the
geographical reach of these services to other more
established fi nancial markets in order to increase our
product diversity.
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• The types of roles we play in our fi nance raising business
are:
Arranger: This is one of our most frequently played
roles, given our strategic market positioning. The
role of arranging a Sukuk may be undertaken by
LMC in its sole capacity, though in some instances,
we share this title with our transactional partners.
As part of this role, LMC will coordinate the process
of listing and rating the instrument if required.
Structuring adviser and documentation agent:
These roles are central to the establishment of
a Sukuk or fi nance raising structure. LMC will
structure an appropriate Shariah compliant
instrument and then prepare all related
transaction documentation. The level and extent
of documentation required will vary from one
structure to another.
Placement agent: LMC is frequently involved as
the sole placement agent on Sukuk it arranges
though placement cooperation arrangements
are also entertained where required by a given
transaction. On occasion, we may also act as a
third party placement agent on a select number
of Shariah compliant instruments issued by other
fi nancial institutions.
Issue manager and/or trustee: Given our primary
issuance experience and process streamlining, we
are well positioned to play the role of issue manager
throughout the tenor of any given Sukuk. This role
largely entails the performance of monitoring and
management tasks for the Sukuk as well as the
key task of ensuring timely reporting/payment to
Sukuk investors. All activities undertaken by LMC
acting in such capacity are intended to ensure the
preservation and protection of the best interests of
the Sukuk holders.
• Private equity raising: Though established in more
recent times, our private equity services have benefi ted
from the extensive knowledge gained in our capital
markets-based fi nancing activities. In this capacity, LMC
conducts and coordinates the modeling of transactions
jointly with the client, assists him in identifying and
resolving any prospective legal and corporate issues
arising from the equity offering, prepares all offering
documentation and presentation materials, directs
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