 In this module, we are going to discuss a rather simple Sukuk structure. This is called Sukuk-Murabha. Sukuk-Murabha is actually based on the concept of commodity Murabha, which we have discussed previously on at least two occasions, if not more. So Sukuk-Murabha involves a commodity Murabha structure and is perhaps the most synthetic structure of all Sukuk deal. It is normally used for large deals that require a simple structure to transfer the funds from effectively a lender to a borrower. We examine the structure used by quite a few issuers in Saudi Arabia and Malaysia. Before I go to the structure itself, I must clarify that Sukuk-Murabha is not a tradable Sukuk. Similarly, Sukuk-Salam is not a tradable Sukuk because these examples of Sukuk are very similar to a debt structure and because they are close to a debt structure, selling and buying debt on a discount or for a premium is not permissible in Sharia or Islamic law. So when the Sukuk holders, they buy Sukuk-Murabha, they hold it for maturity. They cannot sell it for a different price to other investors in the secondary market. So let us look at a basic structure of a Sukuk-Murabha. Central to this structure of course remains an issuer which could be an SPV. In Malaysia, a number of Sukuk-Murabha deals do not require setting up an SPV. But for the cleanliness of the structure, it is always advised that the issuer should be a special purpose vehicle set up for this very purpose of issuing Sukuk and holding Sukuk assets on behalf of the Sukuk investors. So this issuer would issue Sukuk and would receive Sukuk proceed. So the cash would come into the account of the issuer. Of course, the issuer is not looking for money. The money is actually needed by this obligor, this company, this corporation, it is looking for money. Now issuer cannot give the cash directly to the obligor. In order to transfer the cash, issuer would enter into a commodity Murabha transaction, the details of which you have already learned in a previous module. Now for commodity Murabha, we need a commodity broker one and a commodity broker two. In order to execute commodity Murabha, the issuer would buy a commodity on spot from commodity broker one for this price dollar using the Sukuk proceeds. This commodity would then come in the ownership of the issuer and this issuer would then sell that commodity on a deferred payment basis on Murabha basis to the obligor and the price would be dollar plus this profit dollar plus pie. Now the commodity has come to the obligor and it has to pay after sometime maybe three months, six months, one year, this amount to the issuer. So in order to have the liquidity, the obligor would sell the commodity to commodity broker two for a price equal to dollar and this is how obligor would have access to cash and that was the objective of the obligor anyway. At the end of the finance period, the obligor would be paying dollar plus pie to the issuer and the issuer would be distributing that amount amongst the investors. So this is structure of a plain vanilla Sukuk Murabha. As I said that Sukuk Murabha is a Sukuk which is not tradable in the secondary market in a number of jurisdictions especially in Malaysia and increasingly in Saudi Arabia this structure is being used by large corporations to raise money in the short run and in the short run it means for a period of one year, two years or maximum three years. Normally the deals are very large, it could be a one billion Sukuk Murabha for 18 months. So this type of Sukuk is important for quick deals because Sukuk Murabha based on commodity Murabha is a very, very standard structure.