Dictionary

Sukuk Bond Distribution

From the Collaborative Bond and Money Market Data Portal.   

 

 

Sukuks are instruments that are structured in a way as to generate returns to investors without infringing Sharia Islamic law. They are also referred to as Islamic bonds. This differs from Bank - Islamic, which is an industry sector classification at the entity level for issuers that comply with Islamic principles.

 

A Sukuk is a certificate that is sold to the investor and then rented back by the issuer for a predetermined rental fee. At the same time, the issuer contractually agrees to buy back the Sukuk at a future date at a par value. The Sukuk represents an undivided beneficial ownership, which entitles the holders to a share in the revenues generated by the Sukuk asset such as a debt, a project, a business, or an investment. The sale of a Sukuk relates to the sale of a part share in the assets. 
 

In the Collaborative Bond and Money Market Data Model the Sukuk classification appears within the field Distribution. In our view, we see it as bonds that are targeted to a specific universe of investors. 
 

Based on available data, on the 13th of December, 2017 the total amount of outstanding Sukuk bonds stood at USD 114bn.
 


 

For information on the current size of the Sukuk bond Market, please use CMDportal data sheet tool. Select Distribution equals "Sukuk".