A N A LTERNATIVE S OURCE OF C APITAL P EER G ROUP D IALOGUE ON S UKUK - PowerPoint PPT Presentation

I SLAMIC F INANCE : A N A LTERNATIVE S OURCE OF C APITAL P EER G ROUP D IALOGUE ON S UKUK T HE W ORLD B ANK & I NTERNATIONAL F INANCE C ORPORATION Strictly Private & Confidential June 2014

D ISCLAIMER Confidential This presentation is for informational purposes only and is being furnished on a confidential basis to a limited number of recipients. The information in this document is derived from sources believed to be reliable but which have not been independently verified. Taylor-DeJongh makes no guarantee of its accuracy and completeness and is not responsible for errors of transmission of factual or analytical data, nor is it liable for damages arising out of any person’s reliance upon this information. All charts and graphs are from publicly available sources or proprietary data. This presentation does not constitute an offer of, or invitation to purchase or subscribe for any securities in any jurisdiction, including the United States of America. This document is intended to be distributed in its entirety. No part of this presentation may be reproduced in whole or in part or provided to others without the prior written permission of Taylor-DeJongh. No consideration has been given to the particular investment objectives, financial situation or particular needs of any recipient. The purpose of this presentation is to ascertain levels of interest in Taylor-DeJongh and to assist recipients in deciding whether they wish to proceed with a further investigation of Taylor-DeJongh. No representation is made, or assurance given, that the statements, projections or forecasts are correct or that the objectives of Taylor-DeJongh Inc. or any of its affiliates will be achieved. All information in this presentation is subject to amendment, rescission, and updating in due course. | 1

T ABLE OF C ONTENTS Confidential I. G LOBAL T RENDS IN S UKUK II. S ELECT L ANDMARK D EALS | 2

I. S UKUK AS A C APITAL S OLUTION Confidential Sukuk are financing structures, analogous to Today Sukuk are: conventional asset-backed securities, that have  Instruments that may be Publically Traded been used for over 20 years and Rated  Suitable assets include “hard” assets such as  Fresh and Highly Liquid Pools of Capital that equipment, natural resources, oil & gas can be tapped through asset-backed finance reserves, production and infrastructure of structures for North American and European almost all kinds assets  Structured as a Regulation S and Rule 144A  Priced at an Advantage Compared to transaction with a rating by international Conventional Markets agencies  An excellent fit for Infrastructure and Natural Resource Firms  Secondary market has rapidly developed, thus dramatically multiplying liquidity  The global Sukuk market exceeded USD 120 billion in 2013 | 3 Source: Standard and Poor’s

I. S UKUK I NVESTOR B ASE Confidential I NTERNATIONAL I SSUANCE M ARKET  Retail investors  High net-worth investors  Islamic financial institutions  Non-bank financial institutions  Pension funds  Endowment funds  Central banks S UKUK V OLUME BY I SSUER N ATIONS IN 2013 90 82.4  Investment agencies 80 70  Governments 60  Local governments /Municipalities 50 40  Insurance/Takaful companies 30 20 14.7 7.1 5.6 10 4.1 2.4 1.7 0 Malaysia KSA UAE Indonesia Turkey Qatar Bahrein | 4 Source: : Bloomberg, IFIS, Zawya

I. W HY U SE S UKUK AS AN A LTERNATIVE C APITAL P OOL ? Confidential Increasing Value of Sukuk Issuance  Substantial source of capital that attracts 131 140 liquidity from a wide pool of investors in the 122 120 Middle East and South East Asia, in addition 100 USD Billions 85 to conventional markets 80 54 60 38  Highly competitive in pricing and tenor to 32 40 20 asset-backed structured finance, including 20 0 bonds 2007 2008 2009 2010 2011 2012 2013  In high demand with institutional investors, Increasing Number of Sukuk Issuances 800 who are actively seeking asset-backed 714 700 instruments Number of Issuances 600 528 500  Well-established track record for Sukuk, 426 400 which has been developing since 1990s 300 255 230 178 200 100 0 2007 2008 2009 2010 2011 2012 | 5 Source: KFH Research, Thomson Reuters Zawya Sukuk Perceptions and Forecast Study 2013

I. E XCESS D EMAND FOR S UKUK Confidential 350 300 Demand Gap of over USD 200 250 billion USD Billions 200 150 131 122 105 100 85 51 45 50 0 2008 2009 2010 2011 2012 2013  Demand in excess of USD 600 billion is projected for Sukuk by 2015  Large supply and demand gap insures that issuances will continuously grow | 6 Source: Thomson Reuters Zawya Sukuk Perceptions and Forecast Study 2013 Ernst & Young: The World Islamic Banking Competiveness Report 2013 Thomson Reuters Global Sukuk supply/demand gap to peak in 2014 -Study

II. S ELECT L ANDMARK D EALS Confidential Sadara DANAINFRA DEVELOPMENT Petrochemical NASIONAL BHD BANK OF Plant 2012 KAZAKHSTAN 2012 USD 19.3 billion USD 95 million USD 76 million EAST CAMERON SAXONY- Qatargas II LNG PARTNERS 2004 ANHALT Oil & Gas Assets 2004 2006 East Cameron Partners, LP USD 100 million USD 168 million USD 8.5 billion Alba Aluminium SABIC DUBAI CIVIL Smelter AVIATION 2006 2003 AUTHORITY 2004 USD 1.7 million USD 1 billion USD 800 million | 7

G LOBAL P RESENCE Confidential Washington DC London 34 Smith Square 1101 17 th Street NW, 12 th Floor London, SW1P 3HL, United Kingdom Washington DC 20036, United States Tel: +44 20 7233 4000 Tel: +1 (202) 775-0899 Fax: +44 20 7808 1801 Fax: +1 (202) 775-1668 tdjlondon@taylor-dejongh.com contacttdj@taylor-dejongh.com Dubai Contact Address and Details: Level 41, Emirates Towers Dubai, UAE – PO Box 31303 Tel: +971 4 319 7747 STajer@taylor-dejongh.com | 8