What are the advantages of MCD as a Sukuk and Bond holders’ Agent?
Regulatory and professional expertise in debt instruments.
Neutral and transparent role in protecting investors interests.
Compliance with regulatory and technical standards.
Clear communication channels with investors.
What actions does the company take if the issuer fails to comply?
In case of a violation or breach of issuance terms, MCD, as the agent, informs the shareholders and may coordinate with them to take necessary actions, such as calling a sukuk/bond holders’ meeting or requesting the issuer to rectify the violation.
Does MCD have the right to make decisions on behalf of sukuk and bond holders?
The company has limited powers according to the agency agreement and executes actions agreed upon by sukuk/bond holders within the regulatory and contractual framework.
Are fees charged to sukuk/bondholders for this service?
No, the service fees are borne by the issuer, The sukuk or bond holders are not charged directly for this service.
What is the agent’s role in general meetings of sukuk or bond holders?
MCD chairs and manages the general meetings, coordinates with relevant authorities, provides reports on the financial or legal status of the issuance if needed, and supervises voting and execution of investors’ decisions.
Can MCD represent sukuk and bond holders before judicial authorities?
The company represents sukuk holders or bond holders before judicial authorities, or in dealings with the issuer, beneficiary, or third parties.
What laws and regulations govern the issuance of sukuk and bonds?
Commercial Companies Law, 2019
Securities Law, published in the Official Gazette 2022
Regulations governing companies operating in the securities sector
Regulation on Bonds and Sukuk, published in the Official Gazette 2024
