Principal-Protected Market-Linked Debenture

Islamic Finance
Security Deposit in Murabaha
October 23, 2021
Finance
Principal Protected Structured Product
October 23, 2021

A market-linked debenture (MLD) whose issuer promises to pay back the principal amount (face value) of the debenture to the holders. However, the coupon rate is not fixed but rather linked to one or more economic variable such as equity share price (equity index), foreign exchange rates, commodity prices, etc.

It is known for short as PP-MLD.

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