Equipment Trust Certificates

https://islamicmarkets.com/dictionary/e/equipment-trust-certificates
Copy URL

Dictionary term

Definition of "Equipment Trust Certificates"

A proposed Islamic financial instrument where an Islamic Trust Fund could issue equipment trust certificates (ETCs) to raise funds for purchasing a durable asset, like an aeroplane, to be leased to a company. The ETCs would carry a fixed rate of return from out of the lease money earned by the Islamic Trust Fund. The fund could deal in leasing of various types of assets at a time.


Get access to 300+ modules today and learn from expert trainers...