Islamic Transactions Certificates

Definition of "Islamic Transactions Certificates"

Islamic bonds issued by the Islamic Transactions Branches of Bank Misr, Egypt for a nominal value of 1000 Egyptian pounds (or US dollars) and their multiples. The bond was issued for a term of five renewable years. The funds collected were invested by the bank in Islamic projects and the bank had full authority to decide the investment avenues. A monthly return was payable to the holders by the bank but it was finally adjusted at the time of annual results of the enterprise. The certificate holder could recover its value 6 months after the date of its issue and could get an interest-free loan from the Bank with certificates as a collateral.