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Typical Asset Eligibility Criteria on the IILM Sukūk Programme:

Maximum maturity of 15 Years

Minimum long-term rating of “A” by S&P or acceptable credit enhancement

Asset Obligor: Sovereign, Sovereign-linked or Supranational

The obligations of the Asset Provider are irrevocable, unconditional and unsubordinated to its other obligations

The underlying asset(s), transaction structure and documents are approved by the IILM’s Board Executive Committee, Shari’ah Committee and Rating Agency

The IILM can pull together several asset transactions and fund them through a single issuance for size purposes

The Assets can be sourced from a diversified geographical & sectorial base, lowering overall correlation

Key benefits for joining the IILM funding platform include the following:

Diversification from regular investor pool and certainty of funding whereby the IILM is sole subscriber to the certificates issued

Competitively priced offering compared to traditional sources (Syndications, Bilateral and Public Issuances)

Possibility to partner with Multilateral Banks and Sovereigns to structure solutions (Guarantee etc.)

Bespoke tenors typically not available in the USD capital markets to better manage debt repayment profile

Lock-in of medium to long-term funding up to 15-year in USD as soon as terms are agreed

The Private Placement commitment means the borrower is not exposed to capital markets & volatility risks

Release of borrower Partner Banks’ balance sheet & funded lines for other purposes & products

Cost and time savings: convenient / lighter documentation in Private Placement format, no listing and filing involved, no prospectus, no requirement for global marketing of the issuance, less third parties involved