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First istisna’a sukuk for the production of ethical films

28 August 2013

Press release

9 May 2013

CIFIE’s Shari’ah Board approves the first istisna’a sukuk for the production of ethical films

CIFIE Shari’ah label: initial certificate

Scope: the “Start 2” fund (sub-fund)

After careful study and analysis of the documents and contracts relating to the investment operations and structuring of the “Start 2” fund of the company “SIF” MEDIALINK, and of the istisna’a sukuk whose underlying asset is the “production” of films that comply with the rules of the Shari’ah, and after various exchanges with the client, our committee certifies that the structures comply with the principles of the Shari’ah.

A detailed charter has been drawn up for the client, who undertakes to submit to CIFIE’s half-yearly audit controls.

This is a first in the field of ethical filmmaking in compliance with the precepts of Islam.

Finally, the completion of this project is a fine addition to the field of Islamic financial engineering.

Target annual performance of 15%:
5%* of net profits will be distributed in the form of alms (with the investor’s agreement).
The balance will be shared between the investors (80%) and the fund managers (20%).

The “alms” line breaks down as follows: 5%* of net profits go to a foundation to be created to help young Muslims who wish to train or develop projects linked to the production of ethical films, which may collect other funds for the same purpose. The investor may decline these alms, whereas the General Partner’s commitment is final for its share. Each investor will be individually responsible for their annual zakah.

* The rate of 5%, 2.5% or 0% is at the investor’s discretion. The General Partner commits to a minimum of 2.5%.