Friday, January 05, 2007

Islamic Commercial Papers

New Islamic securities issued

"Gamuda Announces Islamic Securities Programme", Bernama, January 5, 2007

The 'Islamic Commercial papers' are reported to be "issued based on either the Syariah principle of Musyarakah [Musharaka] or Murabahah". Based on the agency problems associated with Musharaka, it is highly likely that the issue will follow other Islamic securities issues and be based on a murabaha transaction, although it is unspecified what commodity will be used in the transaction.

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