Sokuk

Tehran, Nov.13 (SENA) - Reports received from Iran's Farabourse Exchange indicate that the entire 3000 billion Rials worth of rental Sokuks have been sold out upon the offering initiated in the first day of designated offering week.

According to the Securities and Exchange News Agency Report, the afore-mentioned Sokuks are real-estate backed and will be used to finance Airport installation and other related construction projects in Kish Island in the Persian Gulf.

The Sokuks will be matured within 4 years with 18 percent rental interest fee associated with them. Bank Maskan is going to guarantee the returns of the Sokuks and is offered by Bank Maskan brokerages.

It is worth noting that Sukuk  is the  Arabic name for financial certificate, also commonly referred to as "Sharia-compliant" bonds. Sukuk are defined as "securities of equal denomination representing individual ownership interests in a portfolio of eligible existing or future assets.

Sukuk was developed as an alternative to conventional bonds that are not considered permissible by many Muslims as they pay interest and may finance businesses involved in non-Sharia-compliant activities (gambling, alcohol, pork, etc.). Sukuk securities are structured to comply with Sharia by paying profit, not interest, generally by involving a   tangible asset in the investment.

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