Monday 23 May 2011

Sukuk Using Al-Istisna’ Structure

Sukuk Using Al-Istisna’ Structure




     1. SPV issues Sukuk certificates to raise funds for the project.

    2. Sukuk issue proceeds are used to pay the contractor/builder under the istisna’ contract to build and deliver the  future project.

    3. Title to assets is transferred to the SPV

       4a & b. Completed property/project is leased or sold to the end buyer. The end buyer pays monthly installments to the SPV.

     5. The returns are distributed among the Sukuk holders.

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