Rules
Constituent selection criteria
SKBI (sukuk index) |
|
| Issuer | Sovereigns/ Corporates/ Financials |
| Currency | USD, EUR, GBP, JPY |
| Coupon Type | Fixed or Floating |
| Geography | No Restrictions |
| Sukuk | Non 144A pursuant global sukuks issued. Sukuks with embedded options are eligible but sukuks with any equity linked features are excluded |
| Shariah Compliance | Only sukuks considered to be Shariah Compliant by at least 1 Middle Eastern scholar |
| Credit Rating | No Restrictions. Sukuks in default not eligible. Any existing consituents will be removed upon default |
| Issue Size | Minimum of USD 100 mn* |
| Settlement | Must settle internationally, eg via Euroclear, and must have a Bloomberg ID |
| Maturity | Minimum of one year remaining to maturity |
| Inception date: 31 December 2004 Source: HSBC |
|
MEBI (conventional index) |
|
| Issuer | Middle Eastern Sovereigns/ Corporates/ Financials |
| Currency | USD, EUR, GBP, JPY |
| Coupon Type | Fixed or Floating |
| Geography | Issues where source of credit risk exposure is Middle East |
| Bond | Non 144A pursuant global bonds issued. Bonds with embedded options are eligible but bonds with any equity linked features are excluded |
| Credit Rating | No Restrictions. Bonds in default not eligible. Any existing consituents will be removed upon default |
| Issue Size | Minimum of USD100 million* |
| Settlement | Must settle internationally, e.g. via Euroclear, and must have a Bloomberg ID |
| Maturity | Minimum of one year remaining to maturity |
| Inception date: 31 December 2004 Source: HSBC * The exchange rate to be used will be based on the closing rate at the last business day prior to the end of each quarter. |
|
MEAG (aggregate index)** |
|
| Issuer | Middle Eastern Sovereigns/ Corporates/ Financials |
| Currency | USD, EUR, GBP, JPY |
| Coupon Type | Fixed or Floating |
| Bond | Non 144A pursuant global bonds issued. Bonds with embedded options are eligible but bonds with any equity linked features are excluded |
| Shariah Compliance | Only bonds considered to be Shariah Compliant by at least 1 regional scholar |
| Credit Rating | No Restrictions. Bonds in default not eligible. Any existing consituents will be removed upon default |
| Issue Size | Minimum of USD 100 mn* |
| Settlement | Must settle internationally, eg via Euroclear, and must have a Bloomberg ID |
| Maturity | Minimum of one year remaining to maturity |
| Inception date: 31 December 2004 Source: HSBC |
|
*The exchange rate to be used will be based on the closing rate at the last business day prior to the end of each quarter.
** Two of the MEAG sub-indices (the MEAG-Investment Grade and the MEAG-Sub-investment Grade indices) are rating sensitive, both in the initial inclusion and the subsequent potential migration processes. The initial inclusion criteria are based on the credit ratings assigned by the three major rating agencies, i.e., Moody's, S&P and Fitch. The definition of investment vs. sub-investment rating is determined by majority views and in the case of split rating or no rating, HSBC will exercise its discretion reflective of market consensus. For potential migration between the two rating based sectors, unanimous up or down grading is required. Again HSBC will exercise its discretion in the absence of ratings.
HSAE (aggregate AED denominated index) |
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| Issuer | Sovereigns/ Corporates/ Financials |
| Currency | AED |
| Coupon Type | Floating |
| Bond | Non 144A pursuant global bonds issued. Bonds with embedded options are eligible but bonds with any equity linked features are excluded |
| Shariah Compliance | Only bonds considered to be Shariah Compliant by at least 1 regional scholar |
| Credit Rating | No Restrictions. Bonds in default not eligible. Any existing consituents will be removed upon default |
| Issue Size | Minimum of USD 100 mn equivalent* |
| Settlement | Must settle internationally, eg via Euroclear, and must have a Bloomberg ID |
| Maturity | Minimum of one year remaining to maturity |
| Inception date: 31 March 2008 Source: HSBC |
|
* The exchange rate to be used will be based on the closing rate at the last business day prior to the end of each quarter.