The most basic type of sukuk which have no additional features (add-ons) such as option to convert or exchange into equity at a certain time. In that sense, vanilla sukuk are very much similar to preference shares.

Sukuk confers on sukuk-holders a “common” right of ownership to the underlying assets (particularly, share-like sukuk/ equity-based sukuk). Under this structure, sukuk holders become the owners of the underlying assets or project, but do not have voting rights.