ISB656: Sukuk

BB Bhd. is looking for financial support to build a factory. Which of the following sukuk concepts is most suitable for this scenario?

• Mudharabah

• Wakalah

• Ijarah

• Istisna’

Sukuk holders would receive periodic cash flows based on a profit sharing ratio (PSR) for the sukuk structured based on the contract of __________.

• ijarah

• musharakah

• istisna

• wakalah

_____________ represents a binding promise by issuer of sukuk to repurchase the assets at the face value at which the sukuk were initially purchased by sukuk holders.   

• Purchase Undertaking

• Asset Sale Agreement

• Lease Agreement

• Trust Certificate

Coupon payment of sukuk refers to the __________

• scheduled profit distribution to sukuk holders.

• penalty imposed on the sukuk issuer for its failure in paying the face value of the sukuk on its maturity.

• face value paid to sukuk holders on maturity of the sukuk.

• fees charged by Securities Commission for approving the sukuk.

Retail Sukuk can be briefly explain as:

• sukuk sell to giant investment companies

• Sukuk issue by Government Link Companies (GLC)

• Public can participate by buying the sukuk

• Available for high net worth individual only

Briefly explain two (2) main factors contributing to sukuk default.