Solum fund to treat sukuk as investment, not debt
British-based, sharia-compliant investment firm Solum Asset Management will launch the first “investment sukuk” in the first quarter of next year, treating Islamic bonds as investment vehicles rather than debt instruments, its chief executive said.
Unlike traditional sukuk, which are akin to conventional debt products, the 200 million sterling ($310 million) Student Accommodation Investment Sukuk will use equity to provide holders with an annual yield of 4 to 6 percent, said chief executive Safdar Alam at the company’s launch in Bahrain.
Alam, former head of Islamic finance at J.P. Morgan, said the company was seeking to delink Islamic finance products from debt-heavy conventional finance …