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What is a Sukuk?

A sukuk is an Islamic debt instrument issued by government or corporations to finance their operations.

 

In exchange, the issuer may give out returns (commonly known as “profit”). These profits are paid at a pre-determined intervals (usually annually or semi-annually) and returns the principal on the maturity date.

Benefits & Privileges

Regular Profit
Low Volatility
Affordable Investment
Diversified Selection
Wide Range of Currencies

 

What are the key product risks? 

Credit risk

  • The payment of the Principal Amount or returns (profits) of this Investment depends upon the ability of the Issuer to make such payments.

 

Interest rates risk

  • The risk that an increase in interest rate may cause the bond price to decline in value.

 

Currency risk (for foreign currency sukuk)

  • Foreign currency investments are subject to exchange rate fluctuations which may affect, unfavorably or favorably, the effective return on the sukuk. 

 

Liquidity risk

  • The risk that an investor may have difficulty liquidating their sukuk holdings and may be forced to sell at a significant discount to market value. 

 

How do I participate?

For further information, please contact your relationship manager or visit any of our CIMB Bank branches.

 

Learn more about Sukuk and start investing today

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Features

  • Tenure : no limit, depending on sukuk structure
  • Flexibility to enter/exit investment on any valid trading day

Important Notes


WARNING
YOU ARE ADVISED TO READ THE ATTACHED INFORMATION MEMORANDUM/OFFERING CIRCULAR/PROSPECTUS/PRINCIPAL TERMS AND CONDITIONS FOR A DETAILED DESCRIPTION OF THE TERMS AND FEATURES OF THE PRODUCT. CUSTOMER MAY LOSE PART OR ALL OF THE INITIAL INVESTMENT. THIS IS NOT A PRINCIPAL PROTECTED INSTRUMENT. THE PRODUCT IS NOT PROTECTED BY PERBADANAN INSURANS DEPOSIT MALAYSIA.