Download for Financing by Seconds of Radio–TV Advertisements

Meetings Numbers:
‫باسمهتعالی‬
126, 127
Dates: 8 / Jun /2016
22 / Jun /2016
Resolution of Shariah Board; 10th Year
Subjects:
Issuance of Manfa’ah (Usufruct) Sukuk1 for Financing by Seconds of Radio–TV
Advertisements
Introduction
The main objective in issuing of this type of Manfa’ah sukuk is to finance the originator (IRIB2)
and the underlying asset for the issuance is the seconds of advertisement program. The
originator securitizes the seconds of advertisement and finance the whole project by issuing
Manfa’ah sukuk. In this process, investors and final users of securities pay their funds and
receive Manfa’ah sukuk from the originator. If the buyer of Manfa’ah sukuk is the final user,
he/she keeps the securities until the exercising date and receives the right to use seconds of
advertisement. However, the condition to use such securities is that the security holder
informs his own intention to use the right of seconds of advertisement X days prior to
exercising date. In case the sukukholders are not the final users, they could buy or sell such
securities through the secondary market or sell the Manfa’ah sukuk directly to the final users
and receive money. Here, the final user enters the exercising process with IRIB.
To make these securities more attractive, originator provides the sukukholders with a put
option on which investors present their own securities to the originator and receive their
investment funds. Originator (IRIB) may sell to the final users the right to use seconds of
advertisement which have obtained via exercising put options by Manfa’ah sukuk owners.
‫صکوک املنفعه‬
2
Islamic Republic of Iran Broadcasting
1
1
Meetings Numbers:
‫باسمهتعالی‬
126, 127
Dates: 8 / Jun /2016
22 / Jun /2016
Resolution of Shariah Board; 10th Year
It is noticeable that such bodies including accountant, guarantor and market-maker have also
planned to enhance the safety and confidence grade of these securities.
The price of benefits and services rendered via Manfa’ah sukuk, with respect to the remaining
time until exercising date, is usually lower than the price of such benefits and services; so, the
one who has invested in Manfa’ah sukuk would benefit from buying and selling of such
securities and the more he gets closer to exercising date, the more he gains profit. The profit
for Manfa’ah sukuk would be equal to the difference between nominal and current prices; so,
Manfa’ah sukuk could be classified as a financial instrument with expected and diversified
profit.
Shariah Board’s Opinion
1- Seconds of advertisement could have the nature of both Manfa’ah and right and also could
be an instance for copyright3. In both cases, Manfa’ah or right, they would be a kind of asset
and simply traded by the wise.
2- In consonance with the opinion of those jurisprudents who know the transactions of Manfa’ah
and right as permissible, and buy or sell of seconds of advertisement Manfa’ah sukuk and the
copyright of these seconds could be executed in form of Manfa’ah and right transactions.
3- Such transactions, conforming to those jurisprudents that do not introduce Manfa’ah and right
transactions permissible and just believe in transactions of standing properties4, could only be
correct in form of Sulh (reconciliation)5 on Manfa’ah and right.
‫حق االمتیاز‬
‫االعیان‬
‫الصلح‬
2
3
4
5
Meetings Numbers:
126, 127
‫باسمهتعالی‬
Dates: 8 / Jun /2016
22 / Jun /2016
Resolution of Shariah Board; 10th Year
4- If the seconds of advertisement are considered as Manfa’ah and transferred to investors in
form of Manfa’ah transaction or Manfa’ah reconciliation6, the ownership of the benefits of
which are completely transferred to investors and there would be no need to sign a new
contract with originator (IRIB) on exercising date of securities.
5- If the seconds of advertisement are considered as copyright and transferred to investors in
form of Manfa’ah transaction or Manfa’ah reconciliation, there would be no kind of ownership
and investors would only have the right to trade with originator (IRIB) on exercising date of
securities. So, a new contract must be signed with originator on exercising date.
6- Originator (IRIB) transfers Manfa’ah or copyright of the seconds of advertisement to the
applicants (investors) in the exchange for a certain price and a certain period of time in form
of Bai (sale)7 or Sulh transactions. Conforming to such contracts, sukukholders could exercise
their own securities on maturity date or before that date transfer the securities to others in
form of Manfa’ah sale or right sale contracts or Manfa’ah Sulh or right Sulh contracts.
7- In accordance with the previous approval of Shariah board on Manfa’ah sukuk, if the transfer
of securities is in form of Ijarah (lease)8 contract, the secondary market of which would fall in
trouble because of some restrictions in Ijarah contracts. In Ijarah contracts, according to
majority of jurisprudents, the leased asset could not be re-leased by a higher price unless
something is added to the value of the asset. So, transfer of such securities in the secondary
market higher than the nominal price without any more value added to securities, would have
jurisprudential problem.
‫صلح المنفعه‬
‫البیع‬
‫االجاره‬
3
6
7
8
Meetings Numbers:
‫باسمهتعالی‬
126, 127
Dates: 8 / Jun /2016
22 / Jun /2016
Resolution of Shariah Board; 10th Year
8- If the basic contract for these securities is Manfa’ah sale contract9, the price of securities will
be equal to the price of transferring the Manfa’ah ownership, including seconds of
advertisement, in form of Bai (sale) or Sulh (reconciliation). If the basic contract for these
securities is the right sale or right Sulh contract, the price of securities will be equal to the
price of transferring entitlement and priority right which belongs to sukukholders in their new
transaction with the originator. Thus, selling of securities by discount could be executed in
form of a discount in the amount of Manfa’ah or a discount in copyright by the originator
(IRIB) to the sukukholders.
9- Stipulation of put and call options of advertisement securities by a certain price in Bai (sale),
Sulh (reconciliation) and Ijarah (lease) contracts shall be permissible.
10-
Buying and selling of Manfa’ah sukuk by discount and premium shall be correct.
‫بیع المنفعه‬
4
9