Types of Sukuk (Islamic Bonds) and History of Japanese Company Issuance

20 Pages Posted: 2 Apr 2015

See all articles by Bedi Lackmann

Bedi Lackmann

Nomura Institute of Capital Markets Research

Date Written: 2015


Sukuk issues by Japanese companies are still few. Aeon Credit Service Malaysia became the first Japanese company to issue sukuk in 2007, and Toyota Financial Services’ Malaysian subsidiary, UMW Toyota Capital (UMWTC, now called Toyota Capital Malaysia) was next with an issuance in 2008. Both used a musharaka scheme. Nomura Holdings issued an ijarah sukuk backed by aircraft leases in 2010 and more recently, in September 2014, The Bank of Tokyo-Mitsubishi UFJ Malaysia issued the world’s first yen-denominated sukuk.

In this paper we introduce the most basic sukuk structures and some differences between the Malaysian and Middle Eastern markets. We then analyze the structures of Japanese sukuk and the issuers’ intent of tapping into the Islamic bond market.

Keywords: sukuk, Islamic bond, Japan, Islamic finance, Toyota, Aeon, Nomura, The Bank of Tokyo-Mitsubishi UFJ, BTMU

JEL Classification: D92, E41, E44, F21, F23, G14, G15, G32, L21, Z1

Suggested Citation

Lackmann, Bedi, Types of Sukuk (Islamic Bonds) and History of Japanese Company Issuance (2015). Nomura Journal of Capital Markets, Vol. 6, No. 3, 2015, Available at SSRN: https://ssrn.com/abstract=2588818

Bedi Lackmann (Contact Author)

Nomura Institute of Capital Markets Research ( email )

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