Channeling Asset-Managed Sukuk towards SMEs financing: a case study for Sukuk Mudaraba (asset finance) applied to a French SME
Asset-managed sukuk is a pure innovation that we prototyped in the French market where SMEs financing is a national priority due to the bad economic conditions. This paper aims at presenting the result of the research and structuring exercise over a real case study for a mudaraba sukuk which is being proposed to the market, hoping to open the doors to more project finance type sukuk issuance, especially for (small) Euro denominated ticket.
We discuss how the main issues arisen to SMEs financing such as opacity of information, lack of historic track-record, adverse selection in the theoretical framework of asymmetry of information can be resolved using an incentivized scheme of asset management along with a strong security package that holds ownership access rights in the hands of investors.
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