A type of sukuk structure (hybrid securities) in which sukuk certificates give the sukuk holders a contingent right to convert their holdings into equity. A contingent convertible sakk (sing. of contingent convertible sukuk) becomes convertible if the price (value) of the issuer’s equity rises a certain amount, from the date of sukuk issuance.

Shari’a forbids hybrid securities due to the possible dilution of the original shareholder’s equity upon conversion and the amount of gharar (uncertainty) involved. Instead, shari’a promotes plain vanilla structures.