Sukuk are financial instruments, such as certificates, that have economic similarities to bonds but are structured so as to comply with Sharia. Corporate sukuk are sukuk issued by a body corporate, rather than a sovereign issuer.
The singular of sukuk is sakk, but sukuk is sometimes used colloquially as the singular and sukuks as the plural.
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International, USA
Sharia-compliant certificates that represent an undivided ownership interest in an underlying tangible asset proportionate to the value of the holder's investment. The certificates entitle the holders to receive a pro rata share of the cash flows generated by and from the underlying tangible asset.
Sukuk are often compared to bonds, but there are fundamental differences:
Sukuk are not debt obligations. Rather, they represent the sukuk holders' ownership interests in a particular pool of assets.
• In compliance with Sharia principles, sukuk holders are not entitled to receive interest. Instead, they receive a portion of the revenues generated by the assets they own. If no revenues are generated, the sukuk holders are not entitled to any returns.
Sukuk are generally structured as follows:
• The entity seeking capital (the originator) establishes a special purpose vehicle (SPV).
• The SPV issues certificates to investors in exchange for cash.
• The SPV purchases assets from the originator using the proceeds of the sukuk issuance which it holds in trust for the investors.
• The assets generate revenues (whether through a lease transaction (ijara) or another Sharia-compliant financing technique) that are used to return a profit to the investors in accordance with their ownership interests.
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Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

Look at other dictionaries:

  • Sukuk — (Arabic: صكوك, plural of صك Sakk, legal instrument, deed, check ) is the Arabic name for a financial certificate but can be seen as an Islamic equivalent of bond. However, fixed income, interest bearing bonds are not permissible in Islam, hence… …   Wikipedia

  • Sukuk — (‏صكوك‎, DMG Ṣukūk, Plural von ‏صك‎ / Ṣakk) sind islamische Anleihen, bei denen keine Zinsen auf das angelegte Kapital gezahlt werden. Sukuk ist ein Instrument des Islamischen Bankwesens. Inhaltsverzeichnis 1 …   Deutsch Wikipedia

  • Sukuk — Les sukuk (en arabe صكوك, pluriel de صك sukk) sont des certificats d investissements conformes à la recommandation religieuse issue du Coran interdisant aux fidèles directement le prêt à intérêt (riba). Il consiste pour la banque à acheter un… …   Wikipédia en Français

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