The Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI) recently held two public hearings sessions on the exposure draft of governance standard “Syndicated Financing”, via video conferencing. The first session was held in collaboration with KNEKS and INCEIF-ISRARMC in English language and the second session was held in collaboration with Bahrain Association of Banks (BAB) and UAE Banks Federation (UAE BF) in Arabic language. The public hearing sessions were attended by more than 440 participants in total.

The syndicated financing exposure draft sets out the essential requirements related to Shari’ah compliance, transparency, fair dealings / avoidance of conflict of interest and other good governance practices as applicable at various stages / phases of a syndicated financing transaction. Such phases include award of mandate, marketing and negotiation, transaction close, continuity of the transaction and its maturity / liquidation (whether early or as per original maturity).

AAOIFI acknowledges and appreciates the support from the partners: KNEKS, INCEIF-ISRARMC, BAB, and UAE BF. AAOIFI extends its appreciation to the industry and expert participants who included professionals and subject matter experts from various fields and backgrounds as well as academicians and Shari’ah scholars. All industry feedback received in the form of questions, comments and recommendations will be compiled and raised to the relevant working group and AAOIFI Governance and Ethics Board (AGEB) for further deliberation. The final standard is expected to be issued by the end of 2022.  

The exposure draft of “Syndicated Financing” can be accessed at:

In English: Click here

In Arabic: الضغط هنا