Leasing bond-equivalent (Sukuk).
The issuer will sell the financial certificate to an investor group, who will own them before renting them back to the issuer in exchange for a predetermined rental return. Like the interest rate on a conventional bond, the rental return may be a fixed or floating rate pegged to a benchmark, such as LIBOR. The issuer makes a binding promise to buy back the bonds at a future date at par value. Special purpose vehicles (SPV) are often set up to act as intermediaries in the transaction.
Instead of receiving interest payments on lent money, as in a standard bond, a sukuk generally entitles its possessor to (nominal) part-ownership of an asset; he then receives income either from profits generated by that asset or from rental payments made by the issuer.
Share Bonds are investment products (such as mutual funds and unit trusts) that are based on equities that are screened, or filtered, to ensure ethic compliance.
Sukuk are often referred to as “profit-sharing bonds,” but they’re very different from conventional bonds, which benefit one party more than another and, therefore, can’t promote social justice.
Sukuk are asset-based securities; they’re certificates (sold to investors) that represent ownership in a tangible asset, service, project, business, or joint venture.
We as a group can carry out operations and procedures in line with USA bond laws and regulations about SUKUK’s and private equity and investment partnerships…
There are no political or legal constraints in the issuance of Sukuk tools by the statutory organizations of US. The related custodial offices are underpinning the development and settlement of sukuk market rigorously.
Besides of advantages;
1- Sukuk’s that will be exported are processed in all of the stock exchange markets in the world especially in the Gulf countries and London.
2- The income of the investors is going to be accounted as security income
3- High global demand.
4- Due to the fact that its credibility is high, they provide higher credit notes
5- Only income share is paid in Sukuk’s and return of the capital is made at the end of the maturity.
6- Institutions that export sukuk’s are well-known in international stock exchange markets.
7- It is possible to provide funds via Sukuk’s in the times of active crises in the world in a shortest time.
In these respects, we can say that rates of sukuk’s will provide us with advantage of at least 2 points comparing with other financial instruments. Due to this fact, for the funding of long time waiting major public projects as soon as possible, the annual expense should be accounted as 4-6 % for sukuk’s that are exported for 6-8 % which is quite reasonable in the financial market nowadays.
The important point in this issue is to restructure Sukuk’s in the format of Gulf countries and to do business with active financial institutions in the road show without killing time.