IBANK 10.3.7 Salam Sukuk
(1) Salam sukuk represent fractional ownership of the capital of a salam transaction, where the salam capital is constituted by an advance payment to a counterparty as supplier of a commodity (the subject matter) to be delivered at a future date.
(2) The gross return to the sukuk holders consists of the margin or spread between the purchase price of the subject matter and its selling price after delivery.
(3) In some sukuk issues, a third party gives an undertaking that the subject matter will be sold at a price exceeding the purchase price by a specified margin. The undertaking may be achieved by means of a parallel salam transaction in which a third party purchases the subject matter for delivery on the same delivery date as in the original salam contract.
|Derived from QFCRA RM/2015-2 (as from 1st January 2016).|