Walkers Cayman Islands: Cayman SPVs In Sukuk Structures - Islamic Finance News

While a number of mechanisms can be employed to structure a Sukuk transaction from a Shariah perspective, a Sukuk structure typically involves the acquisition of assets from the entity seeking to raise financing (the originator) by a limited recourse, bankruptcy-remote, SPV established in a tax neutral off shore jurisdiction. The Cayman Islands are, unquestionably, the off shore jurisdiction of choice for SPVs on Sukuk structures originating in the Middle East. The prevalence of Cayman SPVs in Sukuk structures stems from a number of factors: Trust regime in the Cayman Islands, Absence of tax, Ease, speed and cost of incorporation, Sophisticated off shore center for financial services, Reliable legal system, Use of Arabic names.