Bonds and sukuk are a type of debt instruments accepted by the Capital Markets Authority “CMA” in the State of Kuwait, which is the supervisory authority responsible for enhancing the financial market. Therefore, CMA has developed some conditions for listing debt instruments on the Kuwait Stock Exchange/ Boursa Kuwait. These conditions mandate having a fair value assessment of the assets associated with sukuk and bonds to ensure transparency and fairness of the financial statements to support the process of sound decision-making by stakeholders.
What are the governing references requiring companies to submit Assets Valuation Reports regarding Sukuk and Bonds?
According to the Executive Regulations of Rule Book No. Twelve (Listing Rules) – Article 4-5, It is stipulated that the Listing Application shall be signed by the Issuer or Obligor and submitted to the Authority, accompanied by 13 types of documents, including point No. 11, which states as follows:
A detailed report on the assets of the Issuer or the Bond Assets or Sukuk Assets related to the indirect issuances, issued by its Auditor stating that these Assets have been valued in accordance with the generally accepted rules and standards. The Authority may request a copy of these valuations.
What is the added value to business entities from preparing the Assets Valuation Report regarding Sukuk and Bonds?
- Compliance with regulatory requirements of the Capital Markets Authority.
- Identifying the fair value of Sukuk and bonds assets.
What is the competitive edge of Baker Tilly Kuwait in providing these services?
Baker Tilly Kuwait is distinguished by specialist professional experience and offers the following characteristics carrying added value to our clients as follows:
- A global consulting firm operating in the State of Kuwait;
- Certified auditors in the Auditors Register at the Ministry of Commerce and Industry;
- Certified auditors at the Capital Markets Authority;
- Local experience under the umbrella of a global network;
- Professional team with in-depth experience in providing assurance services in Kuwait;
- Bilingual team.