A market player (such as an Islamic financial institution, IFI, or any other specialized entity) that creates the underlying asset base or pool of a sukuk issue, in preparation for issuing the ownership certificate (shares in underlying assets) to potential investors (sukuk holders). An origination (principal issuance) is the process of initiating or starting an instrument or arrangement but without being the ultimate issuer (the party issuing it to potential holders/ bearers, etc.)
A principal issuer (originator) may directly conduct origination or through the use of a special purpose vehicle (SPV) or a similar mechanism.
An originator may also be an entity creating a debt (dain) for debt-type sukuk and selling it to another party against origination fees. In short, an originator is the legal entity that raises funds to support and undertake a certain activity/ project (such an entity may be sovereign, quasi-sovereign, or corporate institution, etc.)
Comments