Modeling an Islamic Student Financing Securitization

Abstract

The study investigates developing an Islamic student financing securitization model based on sukuk structures. This study employs sample of descriptive, analytical, and comparative analyses utilized to discuss a novel framework of Islamic securitization through the different structures of sukuk wakalah derived from asset securitization. The result served to investigate the use of Islamic student financing securitization in a Shariah-compliant manner, which would be implementable in Malaysia. It emphasized the sukuk structures based on the wakeel principle, which indicated a situation where a wakeel or representative appointment was made to manage a project on the behalf of the sukuk holder. The findings of this study supported the economic benefits obtained in the form of lower overall financing costs through the use of securitization for student financing in higher education. This paper offers important implications specifically for the creation of sukuk structures and issuing a highly graded and marketable sukuk, which are compliant towards global Shariah principles. The paper fills the gap perceived within the existing literature of Islamic finance by showing Islamic securitization via sukuk as a viable source of funds potential utilizable in stabilizing the securities market. It can also pose as a solution for securing a sustainable funding.

The Effect of Dividends and Capital Gains on Underlying Assets in Green Sukuk

“…It is also possible to be the key to profits for the company by implementing this policy. Although, the profits obtained are large enough also have considerable risks and must be an important point that must be considered by the company (Bakri et al, 2020).…”

“…But clearly, dividend policy does not rule out the possibility of influencing the underlying assets of corporate sukuk. Which, the higher the dividend payment rate will make the price of sukuk rise and the underlying assets in green sukuk may also be affected (BAKRI et al, 2020). This is because if the stock price rises due to the level of dividend payments that makes the company's value rise.…”

The Grim Cost of Economic Growth and Environmental Degradation: A Comprehensive Panel ARDL Study of Public Debt in the ASEAN-5 Countries

“…According to Gaspar et al [1], global public debt has increased significantly from 28% of GDP in 2008 to 256% in 2020, accounting for 40% of the total, the greatest percentage recorded since the middle of the 1960s. Since it poses a threat to the national economy, this rise in public debt has been a source of worry for nations all over the world [2][3][4]. Peng-Lee and Ng [5] contended that rising public debt may result in a significant financial burden for the government, harm economic activity, and obstruct a country's progress.…”