Also known as wakala sukuk. Islamic financial instruments (sukuk (www.practicallaw.com/5-203-8720)) based on an underlying wakala (www.practicallaw.com/3-502-0020) structure.
Financial instruments are issued by a special purpose vehicle (www.practicallaw.com/4-107-7534) that entitle the holders to a return in proportion to their investment in the underlying fund and a right under a purchase undertaking to buy all or a proportion of the underlying assets if certain conditions are fulfilled. The sukuk holders provide the capital for the Sharia (www.practicallaw.com/7-203-8719)-compliant investment activity and the investment of the funds is undertaken by the investment agent (wakeel (www.practicallaw.com/9-502-0022)).