Dear Mr.

Hou:
Further to our discussion on Tuesday 10-5-2-22 where I
understood that you have planned to establish a banking institution
to issue bonds for financing your project and I understood that the
government of China is trying not to fall under the umbrella of the
USA and twist her arm in the cause of dispute or differences, taking
all these facts into consideration and base in our expertise, we would
like to propose our strategic to cooperate with you:
1-To help you establish an off-shore investment bank to issue
bonds.
2-The same bank will also obtain a license to establish an Islamic
window for issuing Islamic bonds.
For your information the main difference between
conventional bonds and Islamic bonds are as follows:
A-For issuing conventional bonds the investors will look at the
credit worthiness of the issuer. If the issuer has no credit
worthiness it will be difficult to it to issue bonds, or it may
issue at a Hight cost which will not be useful for a finance
project.
B-For issuing Islamic bonds the investors will look at the
equality of the assets baking Sukuk rather than the worthiness of
the issuer. Therefore, issuing Islamic bonds will not be a big
financial building for the issuer. The issuer for Islamic bonds to
leverage its financial resources up to several times.
3-we prefer to register the off-shore investment bank in Bahrain
because it is an international financial hub and there are many
European, North American, and Japanese banks.
4-for avoiding falling under the umbrella of the USA we would like to
explain whether the share holders will be you and another private
Chinese citizen, or the share will be registering the name of a
nonchinese individual or company.
If you like to register it in name of a private person, these people
complins. If you don’t want to register it in the name of a Chinese
company or individual, we recommend to bring another Chinese
company or individual whom you trust. We have no problem naming
our company as a share holders and at the same time, we will sign an
agreement to transfer all the shares of our company to your name.
Disagreement will be kept by you as a security to protect you against
all the wrong behavior of our company
5- whether the off-shore bank registers the name of nonchinese the
CEO and members of the board of directors can be all Chinese and
fully responsible for the management of the bank.
6-As one of our partners was the general legal adviser in the Islamic
development bank group and currently signal advise to the CEO of
the Islamic cooperation for insurance of investment and export credit
which is part of the Islamic development group. This cooperation has
agreements and arrangements with the export credit insurance agency
of China. And we work together in covering many exports from
China to Arab countries and Africa.
7-the Islamic bank which is a multilateral development institution has
been created from 57 countries because of our relationship with this
bank disponer in issuing and arranging Islamic bonds. We can
establish strong cooperation with this development bank and your off-
shore bank. This will enable your off-shore bank to expand in issuing
Islamic bonds to finance your trade and projects in Africa and Arab
counties.
8-in the future this off-shore bank can expand its services to enable
chinse private and public companies to have access to Islamic capital
markets.
We hope to receive your comments and feedback on this proposal.
We can arrange a meeting between you and your partners to agree in a
plane in a roadmap for the implementation of this strategy.
Best regards
Mr.Adil Babiker