Heaven-and-Hell Bond

Banking
GPM
May 16, 2021
Islamic Finance
Kafalah bil Nafs
May 16, 2021

An index-linked product (an index-linked note or bond) that is denominated and interest-payable in one currency whilst its redemption value is linked to an exchange rate for another currency. It is a variant on dual currency bond with principal redemption tied directly to the change in the spot exchange rate over the its life (from issuance to maturity).

It is also known as an indexed currency option note.

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