Methods and systems for issuing a convertible financial instrument

A convertible financial instrument for raising capital by an issuing business in compliance with Sharia principles is provided. The financial instrument includes a sukuk portion representing a non-equity ownership interest in the business, and a conversion portion exercisable upon reaching a convers...

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Bibliographic Details
Main Author AL-SALEH, MUSTAFA E
Format Patent
LanguageEnglish
French
German
Published 16.05.2007
Subjects
CALCULATING
COMPUTING
COUNTING
DATA PROCESSING SYSTEMS OR METHODS, SPECIALLY ADAPTED FORADMINISTRATIVE, COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORYOR FORECASTING PURPOSES
PHYSICS
SYSTEMS OR METHODS SPECIALLY ADAPTED FOR ADMINISTRATIVE,COMMERCIAL, FINANCIAL, MANAGERIAL, SUPERVISORY OR FORECASTINGPURPOSES, NOT OTHERWISE PROVIDED FOR
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Summary:A convertible financial instrument for raising capital by an issuing business in compliance with Sharia principles is provided. The financial instrument includes a sukuk portion representing a non-equity ownership interest in the business, and a conversion portion exercisable upon reaching a conversion date. The sukuk portion includes a coupon return paid from at least one of profits and capital gains of the business. The sukuk portion is redeemable at a maturity date at a face value of the sukuk portion. The conversion portion is exercisable to convert the sukuk portion based on a predetermined formula into a converted financial instrument representing an equity ownership interest in the business.
Bibliography:Application Number: EP20060250421